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2019 (10) TMI 185 - AT - Income TaxDisallowance u/s. 14A r.w. Rule 8D - HELD THAT:- The Special Bench of Tribunal in the case of ACIT Vs. Vireet Investments (P) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] has held that only those investments are to be considered while computing average value of investments, which yielded exempt income during the year. Thus, in the light of decision of Special Bench we concur with the contentions of assessee. The issue is restored back to the file of Assessing Officer for recalculation of disallowance u/s. 14A r.w. Rule 8D after excluding those investments on which the assessee has not earned any exempt income during the period relevant to the assessment year under appeal. Assessee has stated at the Bar that if amount of disallowance u/s. 14A after recomputation is reduced below suo-moto disallowance made, the assessee would not claim refund/adjustment of excess suo-moto disallowance already made. Thus, ground No. 1 raised in the appeal by the assessee is allowed for statistical purpose. Disallowance of weighted deduction of expenditure incurred on in-house research & development activities u/s. 35(2AB) - HELD THAT:- As decided in own case [2018 (12) TMI 1497 - ITAT PUNE] where facility has been recognized by the prescribed authority and agreement has been entered into between facility and the prescribed authority and thereafter the role of Assessing Officer is to look into and allow the expenditure incurred on in-house R&D facility as weighted deduction under section 35(2AB) - no merit in the orders of authorities below in restricting weighted deduction claimed under section 35(2AB) of the Act by ₹ 18,42,000/- on the ground that DSIR had not approved the said expenditure. It may be pointed out herein itself that reasons for not approving expenditure have also not been made available to the assessee. Consequently, the same cannot be basis for curtailing deduction claimed under section 35(2AB) - Ground No. 2 raised in the appeal by the assessee is allowed
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