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2017 (11) TMI 126 - HC - Income TaxDisallowance U/s 14A - whether addition has to be limited to the quantum of income not forming part of the Total income of the assessee even when clear, explicit and unambiguous provisions of section 14A read with Rule 8D do not stipulate any such condition? - Held that:- In Joint Investments Pvt. Ltd. v. Commissioner of Income Tax [2015 (3) TMI 155 - DELHI HIGH COURT] has held that by no stretch of imagination can Section 14A or Rule 8D be interpreted so as to mean that the entire tax exempt income is to be disallowed. The window for disallowance is indicated in Section 14A, and is only to the extent of disallowing expenditure “incurred by the assessee in relation to the tax exempt income”. This proportion or portion of the tax exempt income surely cannot swallow the entire amount as has happened in this case. - Decided in favour of the Assessee.
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