Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (5) TMI 720 - AT - Income TaxDisallowance u/s 14A r.w.s. 8D - HELD THAT:- The assessee has earned exempted income and the assessee has also voluntarily disallowed the expenditure to earn the exempted income. AO has not discussed anything as to why the expenditure declared by the assessee was not realistic for maintaining the investments. There may not be much difference on the quantum of work for making one rupee investment or one hundred crores or maintaining the existing investments. Once the assessee has admitted the expenses for earning the exempt income and it was not explained as to how the said expenses may not be realistic, the Assessing Officer was not correct to make disallowance under Rule 8D(2)(ii) of the Income Tax Rules and accordingly, the disallowance made under Rule 8D(2)(ii) stands deleted. So far as disallowance under Rule 8D(2)(iii) is concerned, the Assessing Officer is directed to consider only those investments for computing average value of investment which yielded exempt income during the year under consideration as per Rule 8D(2)(iii) in view of the Delhi Special Bench of the Tribunal in the case of ACIT v. Vireet Investment (P) Ltd..[2017 (6) TMI 1124 - ITAT DELHI] and to pass detailed order. Appeal of assessee is partly allowed for statistical purposes.
|