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2021 (6) TMI 498 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - exempt income to be considered for the purpose of arriving at average value of investment - HELD THAT:-The Hon'ble Special Bench of Income Tax Appellate Tribunal, Delhi in the case of Asstt. CIT Vs. Vireet Investment (P) Ltd., [2017 (6) TMI 1124 - ITAT DELHI] has held that while computing the amount of disallowance under sub clause (iii) of sub-rule (2) of Rule 8D of the Rule, the value of investment which yielded exempt income alone has to be considered for the purpose of arriving at average value of investment, on the similar lines, the decision of the Hon'ble Delhi High Court in the case of ACB India Ltd. Vs. Assistant Commissioner of Income Tax [2015 (4) TMI 224 - DELHI HIGH COURT] and the decision of Marg Ltd. Vs. CIT, [2020 (10) TMI 102 - MADRAS HIGH COURT] and followed subsequently by the Hon'ble Madras High Court in the case of CIT Vs. Shriram Ownership Trust [2020 (12) TMI 736 - MADRAS HIGH COURT] and also by the Karnataka High Court in the case of Pragathi Krishna Gramin Bank [2018 (6) TMI 1283 - KARNATAKA HIGH COURT] We find merit in the submissions made on behalf of the appellant that the amount of investment which yielded exempt income alone should be taken into consideration for the purpose of arriving at average value of investment as envisaged under sub clause (iii) of sub-rule (2) of Rule 8D of the Rule. Accordingly, we restore the matter back to the file of Assessing Officer for the purpose of computing the amount of disallowance in the above mentioned manner.appeal of the assessee is partly allowed for statistical purposes.
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