Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1647 - AT - Income TaxDisallowance u/s.14A r.w.r. 8D(2)(iii) - CIT(A) directed the AO to recompute the disallowance u/s.14A r.w.r.8D and to consider 0.5% of the average of the value of the investment, the income from which does not or shall not form part of the total income - as contented CIT(A)’s direction to re-compute the disallowance u/s.14A r.w.r.8D(2)(iii) was erroneous - HELD THAT:- As the issue was squarely covered by the decision of the Co-ordinate Bench of this Tribunal in the case of M/s.Computer Age Management Services (P) Ltd [2014 (11) TMI 1030 - ITAT CHENNAI] computation of the disallowance under section 14A read with rule 8D(2) (iii) which is issue in the assessee’s appeal is restored to the file of the Assessing Officer for re-computation in line with the direction given above. No disallowance under section 14A read with rule 8D(2)(ii) and (ii) can be made in this case. Thus direct the Assessing Officer to re-compute the disallowance under Rule 8D(2)(iii) by taking the amount equal to ½ percentage of the average value of the investment which has given rise to the income which does not form part of total income. Revenue appeal dismissed.
|