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2017 (1) TMI 1153 - ITAT KOLKATADisallowance u/s. 14A r.w.r 8D - Held that:- As the Ld. AR for the assessee has pointed out that net interest is to be taken into account for disallowance purpose, as the assessee company under consideration is a NBFC company which received interest and paid interest during the assessment year under consideration. Therefore, the differential amount of ₹ 39,42,331/- should be considered for the purpose of computation of disallowance u/s. 14A read with Rule 8D(2)(ii) of the Rules. In addition to this, the Ld. AR for the assessee also argued that the disallowance u/s. 14A of the Act should not exceed the exempt income. Therefore, considering the factual position and the precedence cited by the Ld. AR for the Assessee, we direct the AO to consider the net interest amount for the purpose of disallowance u/s. 14A read with Rule 8D(2)(ii) of the I.T. Rules and also should not disallow the amount beyond the exempt income. Disallowance u/s. 14A for the purpose of computation of book profit u/s. 115JB - Held that:- The disallowance made u/s. 14A of the Act cannot be added to the net profit for computing book profit u/s. 115JB of the Act.
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