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2018 (1) TMI 1404 - ITAT MUMBAIDisallowance u/s 14A - determination of average value of investment to compute disallowance of expenditure u/r 8D(2)(iii) - Held that:- As in Cheminvest Ltd vs CIT (2015 (9) TMI 238 - DELHI HIGH COURT), categorically held that the average value of investment is to be worked out by taking into account the entire opening and closing investments in quoted and unquoted shares of group and other companies, but only investment in shares which have yielded tax free income. In this case, the CIT(A) has considered investments in Wadhwa Food Retail Pvt Ltd for the purpose of average value of investments even though investment in Wadhwa Food Retail Pvt Ltd is not yielded any exempt income. For the purpose of determination of average value of investments, investments in Wadhwa Food Retail Pvt Ltd has to be excluded. Accordingly, we direct the AO to exclude investments in shares of Wadhwa Food Retail Pvt Ltd for the purpose of determination of average value of investment to compute disallowance of expenditure u/r 8D(2)(iii) of Income-tax Rules, 1962. - Appeals filed by the assessee and the revenue are partly allowed.
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