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2022 (7) TMI 621 - ITAT DELHIDisallowance u/s 14A read with Rule 8D(2)(iii) - AO found that the assessee has made substantial investment in mutual funds, dividend on which is exempt - assessee has held shares of a JV Company during the year, such shares being assets which can yield exempt income to the assessee - assessee submitted that the Ld. AO has not recorded the satisfaction as to why there was expenditure relatable to exempt income - HELD THAT:- From the bare reading of the aforesaid observation, it is seen that nowhere AO has noticed the nature of expenditure debited nor he has examined the books of accounts as to what are the expenditure which can be said to be attributable for opening of the dividend income. The conditions laid down in u/s.14A (2) is not being satisfied and accordingly in view of the decision of Godrej & Boyce Manufacturing [2010 (8) TMI 77 - BOMBAY HIGH COURT] disallowance made u/s. 14A is allowed. Decided in favour of assessee. Nature of expenditure - disallowance of CSR expenses - expenditure of capital nature or personal nature - HELD THAT:- As decided in own case [2021 (9) TMI 1405 - ITAT DELHI] the impugned expenditure cannot be held to be capital and it is not in the nature of personal expenditure or for any violation of law. Thus we delete the impugned disallowance of CSR expenses. As regards donation to CM's relief fund, the same is, otherwise allowable as deduction under section 80G(2)(a)(iiihf). - Decided in favour of assessee.
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