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2020 (5) TMI 452 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - expenses relatable to exempt income - HELD THAT:- Relying on the decision of Special Bench in the case of Vireet Investment (P.) Ltd.[2017 (6) TMI 1124 - ITAT DELHI] we restore this issue back to the file of Assessing Officer with the direction to recompute the disallowance under Rule 8D(2)(iii) of the Rules r.w.s. 14A of the Act considering only those investments which yielded dividend income during the year for computation of disallowance of expenses relatable to exempt income. Thus, this ground of assessee’s appeal is allowed for statistical purposes. Disallowance of expenses relatable to exempt income made u/s 14A r.w.r 8D(2) of the Rules while computing book profit under Section 115JB - HELD THAT:- We noted that no disallowance can be made for expenses relatable to exempt income by invoking provisions of Section 14A of the Act r.w.r. 8D(2)(iii) of the Rules while computing book profit under Section 115JB of the Act in view of decision of Special Bench in the case of Vireet Investment (P.) Ltd. (supra). Respectfully following the same, we direct the Assessing Officer to delete the disallowance. Thus, this issue of assessee’s appeal is allowed.
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