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2018 (1) TMI 934 - AT - Income TaxAddition u/s 14A(2) r.w. Rule 8D(i) - Held that:- Keeping in view the judgment of the Hon’ble High Court of Bombay in the case of Commissioner of Income-tax vs. HDFC Bank Ltd. (2014 (8) TMI 119 - BOMBAY HIGH COURT), the A.O prior to arriving at the aforesaid conclusion, ought to have verified the availability of the owned funds with the assessee. We thus restore the issue pertaining to disallowance made by the A.O under Sec. 14A(2) r.w Rule 8D(2)(ii) to the file of the A.O for fresh adjudication. The A.O is directed to readjudicate the issue as regards the disallowance under Sec. 14A r.w Rule 8D(2)(ii) keeping in view the judgment of the Hon‟ble High Court of Bombay in the case of HDFC Bank Ltd. (supra). The Ground of appeal No. 1(ii)(b) & (c) are allowed for statistical purposes. Disallowance of the demat charges u/s 14A(2) r.w Rule 8D(2)(i) - Held that:- We find that though the assessee had assailed before us the validity of the disallowance of the demat charges of ₹ 93,692/- made by the A.O, but however, a perusal of the order of the CIT(A) reveals that the assessee on the contrary had agreed before him that the same were the direct expenses incurred in relation to its exempt income. We thus are of the considered view that in the backdrop of the aforesaid concession of the assessee, the grievance of the assessee as regards the sustaining of the disallowance by the CIT(A) does not survive. - Decided against assessee. Restoring the disallowance u/s 14A(2) r.w. Rule 8D(2)(iii) to the file of the A.O for fresh adjudication - Held that:- Held that:- CIT(A) keeping in view the claim of the assessee that the administrative expenses to the extent of ₹ 13,53,850/- were not incurred in relation to earning of exempt income, and no expense was incurred for earning of the exempt income, had thus rightly directed the A.O to make necessary verifications as regards the said claim of the assessee and readjudicate the disallowance under Sec. 14A r.w Rule 8D(2)(iii). We are of the considered view that no infirmity emerges from the aforesaid observations of the CIT(A). We thus finding no reason to dislodge the view arrived at by the CIT(A), therefore, uphold the same. - Decided against revenue
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