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2017 (2) TMI 1474 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - assessee has earned dividend income - HELD THAT:- As decided in [2016 (11) TMI 1681 - ITAT MUMBAI] as claimed by the assessee that no borrowed funds were utilized for earning the exempt income by the assessee and further the dividend were directly credited in the bank account of the assessee and no expenditure was claimed. What it may be, we find that the assessee only received dividend income, therefore, there is no question of disallowance by invoking section 14A r.w. Rule 8D under the facts available on record. Also explained by assessee that on identical fact in earlier years, no disallowance was made. In the present assessment year also, no borrowed funds were invested by the assessee for making investment in shares or for earning dividend income.Disallowance u/s 14A r. w. Rule 8D cannot exceed the exempt income. In view of this fact, we find merit in the claim of the assessee. The appeal of the assessee is therefore, allowed.
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