Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 319 - ITAT MUMBAIDisallowance u/s 14A r.w. Rule 8D(2)(iii) - working out the ‘book profit’ under Sec. 115JB - MAT computation - Held that:- Only those investments are to be considered for computing average value of investments which yielded exempt income during the year under consideration. See VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] As persuaded to subscribe to the claim of the A.R that the disallowance worked out under Sec. 14A r.w. Rule 8D can only be used for computation of income under the normal provisions of the Act, and the same cannot be transposed for working out the ‘book profit’ under Sec. 115JB of the Act. We direct the A.O to re-work the disallowance under Sec.14A r.w Rule 8D by taking the average value of such investments which had actually yielded tax free income to the assessee during the year under consideration. In terms of our aforesaid observations the order of the CIT(A) therein concluding that the A.O was justified in working out the average value of investment for the purpose of computing the disallowance under Rule 8D(2)(iii) by considering the investments in shares, irrespective of whether such investment had yielded any exempt income during the relevant period, is set aside. The matter is restored to the file of the A.O with a direction to re-work the disallowance under Sec. 14A r.w Rule 8D(2)(iii) in terms of our aforesaid observations.
|