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2018 (6) TMI 1674 - AT - Income TaxDisallowance u/s.14A r.w.Rule 8D - HELD THAT:- The issue under consideration is squarely covered by the decision of the ITAT Special Bench in case of Vireet Investments [2017 (6) TMI 1124 - ITAT DELHI ] wherein it was held that only those investments should be considered for computing average value of investment which yielded exempt income during the year. Respectfully following the same, we direct the AO to recompute the disallowance by excluding the investment on which assessee did not yield any exempt income. We direct accordingly. Addition u/s. 14A, while computing book profit u/s.115JB - This issue is also covered by the decision of Vireet Investment [2017 (6) TMI 1124 - ITAT DELHI] wherein it was held that only the expenditure debited in the P & L account relating to exempt income should be considered and not the disallowance worked out by AO. It was held by Special Bench that computation under clause F of explanation 1 to Section 115JB(2) has to be made without resorting to the computation contemplated u/s.14A r.w.Rule 8D. Respectfully following the decision of the Special Bench, we do not find any merit in the action of the AO for adding the disallowance computed u/s.14A, while computing book profit u/s.115JB.
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