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2022 (5) TMI 1438 - ITAT DELHIDisallowance u/s 14A r.w.r 8D - only submission made before us by the assessee is to the effect that the AO may be directed to compute disallowance u/s 8D(2)(iii) by considering only those investments which have yielded exempt income during the year - HELD THAT:- As could be seen from the working furnished by the assessee, the income from some investments are taxable. Therefore, those investments obviously have to be reduced from the average value of investments. As regards the investments, which have not yielded any exempt income during the year, as per ratio laid down in various judicial precedents, they cannot be considered for computing disallowance under Rule 8D(2)(iii). As relying on Caraf Builders & Constructions (P.) Ltd. [2018 (12) TMI 410 - DELHI HIGH COURT] we direct the Assessing Officer to factually verify assessee’s claim with reference to the working of the investments which have either yielded taxable income or not yielded any income and, thereafter, compute the disallowance by considering only those investments which have yielded exempt income during the year.
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