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2022 (2) TMI 488 - ITAT BANGALOREDisallowance u/s 14A r.w.r. 8D - Assessee submitted that the own funds available is more that investment made thus the interest disallowance is not called for - HELD THAT:- As the own funds available with the assessee would become lower, only if the value of investments and the amount of Loans and advances are aggregated together. If we compare the own funds with the value of investments, then the own funds is more. Hence the ratio laid down by the jurisdictional High Court in the case of Microlabs Ltd [2016 (4) TMI 219 - KARNATAKA HIGH COURT] to the effect that, in such kind of cases, the presumption would be that the investments have been made out of own funds, would squarely apply to the facts of the present case - Decided in favour of assessee. Disallowance made u/r 8D(2)(iii) - We set aside the order passed by Ld CIT(A) on this issue and restore the same to the file of AO with the direction to follow the ratio of decision rendered by the Special bench in the case of Vireet Investments P Ltd [2017 (6) TMI 1124 - ITAT DELHI] Disallowance u/s 14A of the Act to be imported in sec.115JB - The issue urged by the assessee is a legal issue and the same has since been settled by the Special bench in the case of Vireet Investments (P) Ltd [2017 (6) TMI 1124 - ITAT DELHI] wherein it was held that the disallowance made u/s 14A of the Act cannot be imported in sec.115JB of the Act, meaning thereby, the disallowance required to be made under clause (f) of Explanation 1 to sec.115JB should be computed separately without having regard to Rule 8D of IT Rules. Even though the AO has not computed the total income u/s 115JB of the Act, yet there is merit in the contention of Ld A.R that the correct legal principles should have been followed. Accordingly, we restore this issue to the file of AO with the direction to compute the addition to be made under clause (f) of Explanation 1 to sec.115JB of the Act independently on the basis of financial statements of the assessee
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