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2018 (12) TMI 1203 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D(2)(iii) - Held that:- Respectfully following the decision of the Special Bench of ITAT, Delhi, in the case of ACIT Vs. Vireet Investments (P) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] we also hold that only those investments are to be considered for computing average value of investment which yielded exempt income during the year under consideration for working out the disallowance u/s 14A r.w.r. 8D(2)(iii) in the case on hand. The assessee has submitted that the exempt dividend income of ₹ 1 Crore in this year has been earned only from M/s. Embassy Services Pvt. Ltd. Since this judicial pronouncement of the Special Bench of ITAT (supra) was passed subsequent to the passing of order of assessment for Assessment Year 2012-13, we restore this issue to the file of the AO only for the purpose of recomputing the disallowance u/s 14A r.w.r. 8D(2)(iii) of the Rules by restricting the disallowance thereunder i.e., for computing the average value of investments only to those investments which yielded the exempt income earned by the assessee during the year under consideration; as has been held and directed by the ITAT, Delhi Special Bench in the case of Vireet Investments (P) Ltd., (supra).
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