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2018 (5) TMI 1035 - ITAT DELHIDisallowance u/s 14A - dividend income earned - Held that:- Referring to submission that dividend income earned from domestic companies to an extent of ₹ 8,41,48,000/-has been claimed exempt under section 10(34) and that these dividends have been earned from strategic investments made by assessee, this issue now stands settled against assessee by the decision of Hon’ble Supreme Court in the case of Maxopp Investments Ltd vs. CIT (2018 (3) TMI 805 - SUPREME COURT OF INDIA). Accordingly we reject this argument raised by assessee in respect of excluding the investments made in domestic companies which has yielded dividend income under rule 8 D(2) (ii). Coming to the 2nd part of the argument in respect of interest expenditure that is attributed under R 8D (2) (iii) is concerned, it is observed from the financial statements placed in the paper book that assessee does not have bifurcations of interest in the profit and loss account. As the entire interest is kept in a common pool, it is very difficult to bifurcate interest expenditure that is attributable to earning of exempt income. It is observed that assessee during the year has taken loans and advances to the tune of ₹ 59.96 crores. Further in Schedule 18 to the profit and loss account assessee is paying interest on loan of ₹ 118.99 crores, bank charges to an extent of ₹ 265.57 crores and other charges to an extent of ₹ 4.81 crores. As this issue has already been set aside by this Tribunal to be recomputed by Ld.AO, we also set aside this issue back to ld. AO. Assessee shall file all relevant details in order to establish its claim regarding interest expenditure not to be attributable for the purposes of earning the dividend income. Assessee shall furnish all the details in respect of interest expenditure before Ld. AO - Decided partly in favour of assessee as partially remanded.
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