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2022 (8) TMI 430 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - expenditure on exempt income earned by the Assessee during the relevant previous year - Scope of amendments to Section 14A of the Act - HELD THAT:- We note that the Mumbai Bench of the Tribunal has, in the case of Assistant Commissioner of Income Tax- Circle 3(1)(1) Vs Bajaj Capital Ventures (P.) Ltd. [2022 (7) TMI 23 - ITAT MUMBAI] and also in the case of K Raheja Corporate Services Private Limited [2022 (7) TMI 1044 - ITAT MUMBAI] held that the amendments to Section 14A introduced by the Finance Act 2022 shall apply from Assessment Year 2022-23 and onwards. Further, Hon’ble Delhi High Court in the case of Principal Commissioner of Income-Tax (Central) -2 Vs. M/s Era Infrastructure India Ltd [2022 (7) TMI 1093 - DELHI HIGH COURT] has rejected the contention of the Revenue that amendments to Section 14A introduced by the Finance Act 2022 shall have retrospective effect. Accordingly, Ground No.1 raised by the Revenue is dismissed. MAT computation - Disallowance u/s 14A computed as per the provisions of Rule 8D of the Rules for the purpose of computing book profits in terms of Section 115JB - HELD THAT:- This issues stands decided in favour of the Assessee by the decision of Special Bench of the Tribunal in the case of ACIT Vs Vireet investments Private Limited [2017 (6) TMI 1124 - ITAT DELHI]. Further, the Tribunal has, in the case of the Assessee for the Assessment Year 2013-14 and 2014-15 deleted identical adjustment made by the Assessing Officer while computing Book Profits for the purpose of Section 115JB - CIT(A) has granted relief to the Assessee by following the aforesaid decisions. It is not the contention of the Revenue that the operation of the aforesaid decisions has been stayed in appeal preferred by the Revenue. In view of the aforesaid and taking into account our findings in paragraph 7 above, we hold that there is no infirmity in the order passed by the CIT(A) on this issue. Accordingly, Ground No. 2 raised by the Revenue is dismissed.
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