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2014 (1) TMI 228 - ITAT MUMBAIDisallowance of administrative and general expenses – Earning of exempt dividend income u/s 14A – Application of Formula provided under Rule 8D of IT rules – Held that:- The assessee has incurred a total expenses of Rs.49,85,000/- towards staff cost, operating and administrative expense; establishment/general expenses of MIS department which is handling the investment apart from the activity of accounts and banking operations – Thus, a reasonable estimate and allocation of expenses for the purposes of investment activity would be the 1/3 of the total expenses incurred on MIS department - the investment activity also includes investment in the foreign companies and the dividend of which is taxable as well as the investment which are not yielding dividend income - but some fixed maturity plans of mutual funds, then the same would be excluded while considering apportionment of the expenses incurred for earning the dividend income – Decided partly in favour of Assessee.
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