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2020 (11) TMI 202 - AT - Income TaxDisallowance u/s 14A r.w.rule 8D - assessee made suo moto disallowance - HELD THAT:- The Hon'ble Jurisdictional High Court in the case of Pragathi Krishna Gramin Bank Vs. JCIT [2018 (6) TMI 1283 - KARNATAKA HIGH COURT] has held the disallowance under Section 14A of the Act cannot exceed the exempt income. In the instant case, the exempted income earned for the relevant assessment year admittedly is only a sum of ₹ 15,431. This is evident from copy of audited financial statement filed along with audit report in Form No.3CB. Going by the dictum laid down by the Hon'ble Jurisdictional High Court, the disallowance under Section 14A of the Act has to be restricted to ₹ 15,431, however since the assessee has suo moto in the Return of Income had disallowed a sum of ₹ 3,30,421 under Section 14A the disallowance is restricted to ₹ 3,30,421 as per the Return of Income filed by the assessee. - Appeal filed by the assessee is allowed.
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