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2020 (2) TMI 66 - AT - Income TaxDisallowance u/s 14Ar.w.s. 8D - Addition exceeding own exempted income - HELD THAT:- Admittedly, the exempted income declared by the assessee is of ₹ 11,83,96,894.00 only which is not in dispute. The Hon’ble Gujarat High Court in the case of CIT vs. Corrtech Energy Private Ltd [2014 (3) TMI 856 - GUJARAT HIGH COURT] has held that the amount of disallowance under section 14A read with rule 8D cannot exceed the amount of the exempted income Amount of disallowance as discussed above is not warranted in the present facts and circumstances. As such, the amount of the disallowance under section 14A r.w.r. 8D of Income Tax Rules cannot exceed the amount of disallowance made by the assessee i.e. ₹ 29,35,81,617.00 in the income tax return. Accordingly, we delete the addition made by the AO in the case of the assessee which was subsequently confirmed by the ld. CIT(A). Similarly, we also confirm the deletion as made by the learned CIT-A in the appeal of the Revenue. Hence, the ground of appeal of the assessee is allowed whereas the ground of appeal of the Revenue is dismissed.
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