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2017 (1) TMI 1143 - ITAT KOLKATAAddition u/s 14A r.w.s. Rule 8D(2)(iii) - Held that:- AO has not examined the accounts of the assessee and there is no satisfaction recorded by the AO about the correctness of the claim of the assessee and without the same he invoked Rule 8D of Income Tax Rules. While rejecting the claim of the assessee with regard to expenditure or no expenditure, as the case may be, in relation to exempted income, the AO has to indicate cogent reasons for the same. From the facts of the present case it is noticed that the AO has not considered the claim of the assessee and straight away embarked upon computing disallowance under Rule 8D of the Rules on presuming the average value of investment at ½% of the total value. In view of the above and respectfully following the coordinate bench decision in the case of J. K. Investors (Bombay) Ltd., (2013 (5) TMI 580 - ITAT MUMBAI), we reverse the order of lower authorities. Thus, the appeal filed by the assessee is allowed.
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