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2023 (12) TMI 58 - AT - Income TaxAddition u/s. 14A r.w.r. 8D(ii) - As per AO assessee not followed the methodology as contemplated under Rule 8D(2) of the Rules, made disallowance at 1% on whole investment under Rule 8D(2)(iii) - HELD THAT:- We note that the assessee calculated average investment at Rs. 1,07,12,445/- which have yielded the dividend income of Rs. 74,52,725/-, but however, the AO did not satisfy with the said submissions as made by the assessee to consider those investments which yielded exempt income for the purpose of computing disallowance of expenditure. The assessee reiterated the same submissions before the CIT(A), but however, CIT(A) confirmed the order of AO. Before us, the ld. AR drew our attention to the order of Vireet Investment (P.) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] requested to remand the issue to the file of AO for its fresh consideration with a direction to take into account those investments which were yielded exempt income for the purpose of disallowance of expenditure. It is settled principle that those investments which yielded income shall be considered for the purpose of computing expenditure in relation to exempt income. DR did not dispute the finding of Special Bench of Delhi Tribunal, we deem it proper to remand the issue to the file of AO to make disallowance considering those investments which yielded exempt income for its fresh consideration. The assessee is liberty to file evidences, if any, in support of its claim. Thus, the grounds raised by the assessee are allowed for statistical purpose.
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