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2020 (12) TMI 612 - HC - Income TaxDisallowance u/s 14A r.w.r 8D - HELD THAT:- In controversy involved in the present appeals filed by the Assessee is covered by a recent Division Bench judgment in M/S. MARG LIMITED VERSUS COMMISSIONER OF INCOME TAX CHENNAI [2020 (10) TMI 102 - MADRAS HIGH COURT] wherein held that disallowance has far exceeded the exempted income in the form of dividends even though computed at the rate of 0.5% of the average investment made by the Assessee. In our opinion, the same is not permissible at all, because this average disallowance as computed under Rule 8D could be disallowed only if Assessee had actually earned Dividend income in excess of such amount of disallownace, that too after recording reasons for rejecting the apportionment of expenditure so incurred or claim that no such expenditure was incurred to earn that much of Dividend income was validly rejected by the Assessing Authority. We do not find any such reasons even recorded by the Assessing Authority in the present case. Thus issue is set aside and the appeals are restored on the file of the learned Tribunal to decide the appeals de novo afresh, in accordance with the law laid down by this Court in the judgment in M/s.Marg (cited supra).
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