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2017 (11) TMI 1784 - AT - Income TaxDisallowance u/s 14A - total investments for Rule 8D - disallowance u/s. 14A has to be computed only with reference to the investment on which exempt income has been earned during the year - HELD THAT:- This issue is covered in favour of the assessee VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI]. The Special Bench has expounded that only investments has to be considered for computing the average value of investment on which exempt income is earned during the year. Since the CIT(A)’s directions on this issue is to consider only those investment on which exempt income is received. Hence, we do not find any infirmity in the same and, accordingly, we uphold the same. Disallowance u/s. 115JB - Applicability of Rule 8D u/s. 14A in MAT u/s. 115JB - HELD THAT:- In the preset case, we find that the assessee has already made an addition of ₹ 15,61,02,809/- towards disallowance of expenditure relating to exempt income. The Assessing Officer proceeded to apply the provisions of Rule 8D u/s. 14A and accordingly based upon these calculation made further disallowance. Since this proposition is not in accordance with the Special Bench decision in the case of VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] and the total disallowance in this regard is sufficient, we are of the considered opinion that there is no merit in this ground raised by the Revenue. CIT(A) increased the disallowance under MAT in this regard by ₹ 40 lacs. The Revenue has not made any submission as to how this disallowance does not suffice. - Decided against revenue.
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