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2019 (7) TMI 1621 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D (2)(ii) of the Rules - HELD THAT:- We are of the view that the disallowance of interest expenses should be made after the net off interest only. Accordingly, this issue is decided in favour of the assessee against the revenue in the manner as indicative above. Expenditure in view of the provisions u/s 14A of the Act r.w. Rule 8D (2)(iii) of the Rules - HELD THAT:- In the case decided by Special Bench of Delhi titled as ACIT Vs. Vireet Investment P. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] it is specifically held that those investments which yielded the exempt income is liable to be considered for assessing the expenditure to earn the exempt income in view of the provisions u/s 14A of the Act r.w. Rule 8D(2)(iii) of the Rules. In the instant case, the whole investment has been considered for assessing the expenditure to earn the exempt income which is not justifiable. Accordingly, the finding of the CIT(A) is hereby order to be set aside and the issue is remanded to the AO to decide the matter of controversy afresh and to consider the investment which yielded exempt income for assessing the expenditure to earn the exempt income in view of the provisions u/s 14A of the Act r.w. Rule 8D(2)(iii) of the Rules in view of the decision of the special Bench in case of ACIT Vs. Vireet Investment P. Ltd(supra) in accordance with law.
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