Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 1994 - AT - Income TaxIncome from house property - not allowing the deduction in respect of expenses incurred on providing amenities to tenants - HELD THAT:- CIT(A) has given a direction to the AO to proceed in the matter after obtaining the necessary evidences. In our opinion, the direction given by Ld. CIT(A) is vague and not clear. We are, therefore, modify direction given by the Ld. CIT(A) to AO to allow the expenses as in the earlier year by calculating the same by taking the current year’s figure. The AO is directed accordingly and grounds 1 & 2 are allowed. Addition u/s 14A read with rule 8D(2)(iii) - whether the investments which did not yield any dividend were not excluded while calculating the disallowance? - HELD THAT:- AO has included those investments which yielded no exempt income during the year for the purpose of calculation of disallowance under Rule 8D(2)(iii) which in our opinion is wrong and against the ratio laid down by the Delhi Special Bench in the case of ACIT vs. Vireet Investments Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] as decided that investments not yielding any income during the year have to be excluded for the calculation of average investments and only thereafter the 0.5% has to be applied. We, therefore, respectfully following the special bench decision, direct the AO to work out the disallowance by excluding the investments which yielded no exempt income during the year. The ground is allowed. MAT - computation of book profit under section 115JB - CIT-A not directing the AO to exclude those investments which yielded no dividend during the year - HELD THAT:- This issue stands covered by the Special Bench, ITAT Delhi in the case of ACIT vs. Vireet Investments Pvt. Ltd. (supra). Thus we direct the AO to follow the decision of the Hon’ble Special Bench and decide the issue accordingly after providing adequate opportunity of being heard to the assessee
|