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2016 (8) TMI 1234

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..... rference of any employee but rather through the solicitation and advertisement of the bank the question of attributing any expenditure cannot arise at all. In the circumstances, the impugned order is set aside. The matter is remitted to the AO for fresh determination in accordance with the judgment of this court in Taikisha Engineering Private Limited’s case (2014 (12) TMI 482 - DELHI HIGH COUR .....

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..... aimed any expenditure for earning that income. Purporting to apply the statutory disallowance under Section 14A read with Rule 8D of the Income Tax Rules, the AO ascribed a sum of ₹ 1,21,805/- and added it back to the taxable income. The assessee contends that the methodology adopted and entire approach of the revenue is foul. In this connection it is urged that the bulk of the tax exempted .....

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..... d after analysing Section 14A and Rule 8D (of the Income Tax Rules) held as follows: Sub-rule (1) categorically and significantly states that the Assessing Officer having regard to the account of the assessee and on not being satisfied with the correctness of the claim of expenditure made by the assessee or claim that no expenditure was incurred in relation to income which does not form part o .....

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..... the accounts closely and determine if at all any expenditure could be ascribed to the tax exempt dividend/interest earned by the assessee. If indeed the tax exempted income was earned without the interference of any employee but rather through the solicitation and advertisement of the bank the question of attributing any expenditure cannot arise at all. 8. In the circumstances, the impugned ord .....

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