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2022 (1) TMI 335 - ITAT DELHIAddition u/s 14A r.w.r. 8D - enhancing the book profits u/s 115JB for Addition u/s 14A r.w.r. 8D - HELD THAT:- When the own funds of the assessee exceed the investments, the presumption is that the assessee made the investment from out of their own funds, though all the funds are held in the same account. Record does not reveal the quantum of the investment which yielded exempt income. We therefore, restore the issue to the file of the learned Assessing Officer to consider only such investments which yielded the tax free income, but not the entire investments. Further in Vireet Investments Private Limited [2017 (6) TMI 1124 - ITAT DELHI], it is held by the Special Bench of the Tribunal that the disallowance made under section 14A of the Act read with Rule 8D of the Rules cannot be considered for the purpose of enhancing the book profits under section 115JB of the Act. Learned Assessing Officer will take note of it. Accordingly, ground No. 1 is allowed and ground No. 2 is allowed for statistical purpose. Addition invoking the provisions of section 50C - scope of amendment in section 50C - HELD THAT:- Coming to the retrospective nature of the amendment to section 50C of the Act by inserting the proviso, we find that in the case of CIT vs. Shri Vummudi Amarendran [2020 (10) TMI 517 - MADRAS HIGH COURT] as held that the amendment made by the Finance Act, 2016 inserting proviso to section 50C is clarificatory in nature and therefore, had the retrospective application.. Same was the view taken by the Tribunal in the case of ITO vs. Modipon [2015 (1) TMI 609 - ITAT DELHI],SH. ALOK SWARUP, [2020 (9) TMI 921 - ITAT DELHI] and AMIT BANSAL [2018 (11) TMI 1699 - ITAT DELHI] Thus we hold amendment in section 50C by inserting proviso is curative and retrospective in nature and has to be given effect thereof in this case.
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