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2018 (10) TMI 1124 - AT - Income TaxDisallowance u/s 14A - investment was made by assessee on last day of relevant year - assessee made suo-moto disallowance on the basis of method provided in Rule 8D of IT rules - Held that:- Referring to the working of the disallowance u/s 14A we observe that an apparent mistake was pointed out by the assessee during the course of assessment proceedings itself before the Ld.A.O by way of providing the revised calculation of the disallowance u/s 14A r.w.s.8D of the IT rules. It has been consistently held in various judgments that during the course of assessment proceedings if any new claim or a revised claim by way of filing a revised computation of income or placing any material facts on record, then the Assessing Officer is duty bound to assess the correct income of the assessee on that basis. The claim of the assessee cannot be set aside merely by taking the basis that the assessee has suo-moto made disallowance in the income tax return. As perused the above working given by the assessee and are of the considered view that the same is correct and interest disallowance on the alleged investment in SBI Premier Liquid Mutual Fund should have been separately calculated at ₹ 1,05,000/- rather than making it a part of average investment because the specific details of the nexus of interest bearing funds to the investment in the alleged mutual fund are appearing on record. We therefore hold that the disallowance made u/s 14A of the Act r.w.s. 8D of IT rules should be restricted to ₹ 3,47,930/- only. In the result Ground No.1 of the assessee’s appeal is allowed. Deduction claimed to reduce the disallowance offered for tax u/s 14A - Held that:- The case of M/s. Goetze India Ltd [2006 (3) TMI 75 - SUPREME COURT] will not be applicable in the facts of the assessee because in the instant appeal the issue is not related to filing of revised return. Rather in the instant appeal the issue was related only to the correct calculation of disallowance u/s 14A of the Act. It was duly submitted by the assessee during the course of assessment proceedings but no weightage was given by the assessing authority to said calculation. Therefore Ground No.2 of the assessee is also allowed.
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