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2018 (2) TMI 1899 - AT - Income TaxDisallowing u/s. 14A r.w. Rule 8D - computing book profit under MAT provision in proceedings u/s. 143(3) - HELD THAT:- Tribunal’s order in assessee’s cases itself in assessment years 2007-08 and 2008-09 dated 22.06.2016 reversing a similar Section 14A disallowance even after introduction of the computation formula in question under Rule 8D of the Income Tax Rules. DR fails to rebut this factual position. We however noticed that the issue stands covered as per the above tribunal’s decision only qua the former limb of proportionate interest expenditure disallowance. The latter limb of administrative expenditure disallowance has nowhere been discussed either in CIT(A)’s order in question or before the tribunal. CIT(A)’s above extracted findings also nowhere specifically deal with the instant administrative expenditure issue. There can hardly be any dispute that such an administrative expenditure has to be disallowed post assessment year 2008-09. We therefore accept learned Departmental Representative’s corresponding submission regarding this administrative expenditure issue aspect. The impugned disallowance is therefore revived to the extent of ₹ 7,21,908/- only. The Revenue’s former substantive ground is therefore partly accepted in above terms. Impugned Section 14A r.w. Rule 8D disallowance is to be added in MAT computation - Issue is not more res integra in view of tribunal’s special bench decision in case of ACIT vs. Vireet Investment P. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] holding that such a disallowance is not to be added in MAT computation. Revenue’s instant latter substantive ground is therefore declined.
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