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2016 (5) TMI 1425 - ITAT KOLKATADisallowance u/s. 14A - non-recording of satisfaction - Held that:- We find that the issue on the argument of non-recording of satisfaction deserves to be dismissed as from the perusal of the assessment order it could be seen that the AO had clearly recorded his satisfaction that interest relatable to all investment income from which does not or shall not form part of total income is to be considered and no scrip wise investment as considered by the assessee. Accordingly, he proceeded to adopt Rule 8D(2) of the Rules but it is well settled that only investment yielding exempt income are to be considered for the purpose of Rule 8D(2)(ii) and (iii) of the Rules. Accordingly, we direct the Ld. AO to restrict the disallowance u/s. 14A read with Rule 8D of the Rules after considering only investments yielding dividend income. In any case, we direct that the disallowance to be worked out thereon shall not exceed the income which does not form part of the total income. - Decided partly in favour of assessee for statistical purposes.
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