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2019 (4) TMI 616 - AT - Income TaxDisallowance u/s 14A in the book profit determined u/s 115JB - MAT - HELD THAT:- Special Bench in VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] answered this question in favour of the assessee and held that computation for the purpose of clause (f) of Explanation 1 to Section 115JB(2) is to be made without resorting to the computation as contemplated under section 14A r.w. rule 8D. Respectfully following the above decision of the Special Bench , we allow this ground of appeal and direct the AO not to make adjustments in book profit for the purpose of MAT liability on the basis of calculations made with Rule 8D of the Income Tax Rules. Disallowance u/s 14A - interest expenditure - HELD THAT:- Assessee has more interest free funds than the investment made by it which has resulted tax free income. Apart from above, we further find that the assessee has net interest income. Therefore, in view of the judgment in the case of Nirma Credit & Capital P.Ltd. [2017 (9) TMI 485 - GUJARAT HIGH COURT] no disallowance on account of interest expenditure is to be made in the present case. We allow this ground partly and confirm the disallowance to the extent of ₹ 6,790/- representing administrative expenses and ₹ 954/- which is relatable to direct expenditure. Interest expenditure of ₹ 1,43,261/- disallowed by the AO is deleted.- Appeal of the assessee is partly allowed.
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