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2018 (3) TMI 33 - AT - Income TaxDisallowance u/s 14A r.w.s. 8D - Held that:- In the instant case, the assessee had voluntarily disallowed ₹ 21,29,607 by applying all the three limbs of Rule 8D. Hence we are not inclined to get into the availability of own funds as far as applicability of Rule 8D(2)(ii) in the instant case. Revision u/s 263 - Held that:- AO had made elaborate enquiry about the aspect of 14A and had taken a possible view on the same while discussing it elaborately in his assessment order. AO had not made any disallowance of interest u/s 36(1)(iii) which goes to prove that the interest paid other than ₹ 651821/- have been used only for the purpose of business of the assessee and not for the purpose of making investments in shares. When the possible view has been taken by the Ld. AO after taking into consideration facts and circumstances of the case and after raising a specific query with regard to complete details of interest payments vis-à-vis its utilization, and after raising a specific query with regard to disallowance under Rule 8D of the Rules, it cannot be said that the Ld. AO had not applied his mind or had proceeded on incorrect assumption of facts as alleged by the Ld. CIT in his revision order. CIT had passed revision order u/s 263 on the very same issue for assessment years 2011-12 and 2012-13. We find that the Ld. AO had disallowed an additional over and above the amounts disallowed by the assessee voluntarily u/s 14A read with Rule 8D of the Rules under all the three limbs. In both these orders, the Ld. AO had issued detailed questionnaire to the assessee vide 142(1) notice for assessment years 2011-12 and 2012-13 raising specific query in this regard and assessment has been completed after due consideration of the reply received by the assessee and after proper application of mind by the Ld. - Decided in favour of assessee.
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