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2019 (6) TMI 1251 - ITAT MUMBAIDisallowance u/s 14A r.w.r. 8D - in the period prior to introduction of Rule 8D - HELD THAT:- It is not shown to us by learned DR as to how factual matrix in AY 2006-07 is different from that of AY 2007-08. Both the years are prior to AY 2008-09 from where onwards Rule 8D of the 1962 Rules is held to be applicable. Thus, Respectfully following the aforesaid decision of Hon’ble Tribunal in assessee’s own case for AY 2007-08 [2016 (7) TMI 1527 - ITAT MUMBAI] we are of the considered view that end of justice will be met in this case if disallowance of expenses incurred in relation to earning of an exempt income u/s 14A be restricted to 2% of dividend income . Ground no. 1 is partly allowed. Levy of interest u/s. 234C and 234D - HELD THAT:- As agreed by learned counsel for the assessee that levying of interest u/s 234C and 234D is mandatory and there is no dispute as far as mandatory nature of the interest u/s 234C and 234D is concerned but keeping in view facts and circumstances of the case no interest is exigible. Reference is made to the decision of Hon’ble Supreme Court in the case of Anjum M. H. Ghaswala [2001 (10) TMI 4 - SUPREME COURT] DR did not objected if the matter is restored back to the file of the AO for verification of the contentions of the assessee and for deciding the quantum of interest u/s 234C and 234D in accordance with law. Remanded to AO with direction.
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