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2018 (12) TMI 396 - AT - Income TaxDisallowance made u/s 14A r/w rule 8D - MAT computation - book profit computation u/s 115JB - addition made to the book profit on account of disallowance under section 14A r/w rule 8D - Held that:- It is the contention of the AR before us that the assessee has made a working of direct expenditure attributable to earning of exempt income. Undisputedly, the aforesaid working was neither before the Assessing Officer nor before the learned Commissioner (Appeals). Therefore, in all fairness, the claim of the assessee requires to be examined by the Assessing Officer. In view of the aforesaid, we are inclined to restore the issue to the Assessing Officer for fresh adjudication keeping in view the relevant case laws to be cited by the assessee as well as the provision of section 115JB of the Act. Needless to say, the Assessing Officer must afford a reasonable opportunity of being heard to the assessee before deciding the issue. Grounds raised in this regard are allowed for statistical purposes. Deduction under section 80IB(9) - Held that:- Considering the assessee has raised the issue by way of additional grounds which were never raised before the first appellate authority and further, the issue relating to assessee’s claim of deduction under section 14A is restored to the Assessing Officer, we are inclined to restore the issue relating to assessee’s claim of deduction under section 80IB(9) of the Act to the Assessing Officer for deciding afresh by applying the ratio to be laid down in MAXOPP INVESTMENT LTD. VERSUS COMMISSIONER OF INCOME TAX, NEW DELHI AND PRINCIPAL COMMISSIONER OF INCOME TAX-I VS. D.B. CORP LTD. [2018 (3) TMI 805 - SUPREME COURT OF INDIA] in the appeal pending before them on identical issue as referred to above. Needless to mention, the Assessing Officer before deciding the issue must afford reasonable opportunity of being heard to the assessee. Additional grounds are allowed for statistical purposes. Disallowance of direct expenditure under rule 8D(i) read with section 14A - Held that:- Assessing Officer has ultimately proceeded to determine the total income and compute tax liability of the assessee under section 115JB of the Act. While deciding the grounds raised by the assessee on applicability of section 14A r/w rule 8D to the provisions of section 115JB of the Act, we have restored the issue to the Assessing Officer for fresh adjudication keeping in view the Special Bench decision of the Tribunal, Delhi Bench, in Vireet Investment Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI]. Therefore, the issue raised in the present appeal by the Revenue becomes redundant.
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