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2021 (9) TMI 642 - AT - Income TaxDisallowance under section 14A of the Act r.w.r. 8D - Admission of additional evidences - HELD THAT:- In the present Assessment Year, we find that the assessee has taken a specific plea before the AO that the investments were made out of surplus business funds and not out of any borrowed funds. This submission has not been referred to either by the AO or by the CIT(A). We are of the view that in the light of additional evidence now filed before us, the issue requires fresh consideration by the AO and we accordingly set aside the order of the AO and remand the issue to the AO for consideration afresh. The above directions will hold good for disallowance under section 14A of the Act r.w.r. 8D(2)(i) of the Rules. Disallowance under section 14A of the Act r.w.r. 8D(2)(iii) - Neither the assessee nor the AO have made any attempts to identify which are the expenses that can be said to be attributable to the earning of the said income. We therefore set aside the said disallowance also to the AO for fresh consideration with directions to the assessee to substantiate its case that none of the other expenses can be attributed to the earning of the exempt income. We accordingly allow the appeal of the assessee for statistical purpose.
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