TMI Blog2022 (5) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... idered 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. - ITA No. 437/Del/2019 - - - Dated:- 30-5-2022 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER For the Appellant : Sh. Atul Ninawat, Advocate For the Respondent : Ms. Anupama Singla, Sr. DR ORDER PER SAKTIJIT DEY, JM: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The only submission made before us by learned counsel for the assessee is to the effect that the Assessing Officer may be directed to compute disallowance under Rule 8D(2)(iii) by considering only those investments which have yielded exempt income during the year. In this context, the assessee has furnished the following working to demonstrate the quantum of investment which yielded exempt income during the year: Particulars Details Balance as on 31/03/2009 Balance as on 31/03/2008 Average Total Value of Investment (A) 75,71,17,329 46,20,77,229 60,95 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch 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). In this context, the following observations of the Hon ble Delhi High Court in case of Pr. CIT Vs. Caraf Builders Constructions (P.) Ltd. (supra) would be relevant: 26. There is another error made by the Assessing Officer in computing the disallowance under clauses (ii) of Rule 8D (2) with reference to the formula prescribed. Numerical B in clause (ii) refers to average value of the investment, income from which does not form part or shall not form part of the total income. The Assessing Officer for numerical B in clause (ii) had taken the total value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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