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2018 (2) TMI 1215 - HC - Income TaxAddition u/s 14A - Tribunal found that the assessee had surplus tax free funds thus there was no question of disallowance of any interest income and even after completing the format, the disallowance cannot exceed the total administrative expenditure incurred by the assessee - Held that:- We are fully in agreement with the view of the Tribunal. Under no circumstances, can the Assessing Officer attribute administrative expenses for earning tax free income in excess of the total administrative expenditure incurred by the assessee. If it is a case where Assessing Officer disputes, question and disallow the very declaration of the assessee regarding total administrative expenditure, the issue can be somewhat different. Nevertheless, when the Assessing Officer has in the present case did not disturb the assessee's declaration that total administrative expenses incurred by the assessee for all its activities was ₹ 30 lakhs, there was no question of disallowing administrative expenses to the tune of ₹ 60 lakhs under Section 14A of the Act with the aid of Rule 8D of the Rules. Tax Appeal is, therefore, dismissed. - Decided against revenue
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