2016 (7) TMI 1597

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....RDER Abraham P. George,  In this appeal filed by assessee it assails disallowance of Rs. 4,02,442/- made u/s.14A of the Income-tax Act, 1961 ('the Act' in short) r.w.Rule 8D, which was confirmed by the CIT (A). 02. Facts apropos are that assessee had investment to the tune of Rs. 3,00,67,074/- in mutual funds and during the relevant previous year it earned dividends of Rs. 67,074/- w....

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....ted that assessee had claimed exemption only for Rs. 67,074/- being the dividend received by it from mutual fund investments. In the case of Joint Investments P. Ltd, (supra), Hon'ble Delhi High Court held as under at para 9 of its judgment : 9. In the present case, the AO has not firstly disclosed why the appellant/assessee's claim for attributing 2,97,440/- as a disallowance under S....

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....cated in Section 14A, and is only to the extent of disallowing expenditure "incurred by the assessee in relation to the tax exempt income". This proportion or portion of the tax exempt income surely cannot swallow the entire amount as has happened in this case. 10. For the above reasons, the impugned order of the ITAT is set aside. The question of law is answered in favour of the assessee....