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2021 (9) TMI 596 - AT - Income TaxDisallowance u/s 14A - addition in respect of indirect expenses under clause (iii) of Sub-rule (2) of Rule 8D of the Rules - HELD THAT:- Methodology of computation of average value of investment is not in accordance with the provisions of Rule 8D of the Rules prevalent during the relevant period. Hence, we remand the matter back to the file of the AO with a direction to compute the amount of disallowance under clause (ii) of Sub-rule (2) of Rule 8D in accordance with the provisions of Rules as applicable at the relevant point of time. Accordingly, this ground of appeal stands partly allowed. Addition on account of interest u/s. 244A - Addition being interest on income tax refund for the assessment year 2012-13 as the same was not offered to tax by the appellant society on account of ignorance of this fact as the interest refund was adjusted against the tax liability - HELD THAT:- Admittedly, the interest on income tax refund for the assessment year 2012-13 was received by the appellant society during the previous year relevant to the assessment year under consideration. The fact that such interest was adjusted against the outstanding demand of the appellant is immaterial as the adjustment of refund also amount to receipt of the interest. Therefore, we uphold the findings of the lower authorities on this issue. Accordingly, this ground of appeal filed by the assessee is dismissed.
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