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2021 (9) TMI 921 - ITAT CHENNAIAddition u/s 14A r.w. Rule 8D - average value of investment which yielded exempt income - HELD THAT:- As perused the decision in the case of Maxopp Investment Ltd. [2018 (3) TMI 805 - SUPREME COURT] wherein, as observed that as long as an exempt income was earned, the expenditure incurred as attributable to earning such exempt income, had to be disallowed under section 14A - also irrespective of the objective of investment in shares (when the shares are held as stock-in-trade with a view to earn trading profits or as investment representing controlling interest) and the taxpayer earned an incidental exempt dividend income, section 14A was triggered which was based on the theory of apportionment of expenditure between taxable and exempt income. In this case, the assessee has not admitted any expenditure warranting any specific satisfaction to be recorded by the Assessing Officer a contended by the assessee in the grounds of appeal - Assessing Officer is directed to consider only those investments for computing average value of investment which yielded exempt income during the year under consideration as per Rule 8D(2)(iii) in view of the case of ACIT v. Vireet Investment (P) Ltd.[2017 (6) TMI 1124 - ITAT DELHI] and the disallowance shall be recomputed. Thus, this ground of appeal is partly allowed. Addition to income from capital gains - Nature of land sold - Whether land was agricultural land? - As per AO assessee has not filed the sale deed from which the relevant survey can be ascertained. Further, the ld. CIT(A) has held that the land is situated beyond the distance of 5 kms from Kancheepuram is also not verifiable in the absence of sale deed of the property, on the basis of which these claims can be verified - HELD THAT:- What prevented the assessee in filing the sale deed either before the authorities below or before the Tribunal has not been explained. Moreover, the assessee has placed on record sample documents in the form of Encumbrance Certificate pertaining to Neervallur village property, whereas, as per the said schedule of immovable properties, this property disappears. Anyhow, to meet the ends of natural justice, we direct the assessee to file complete sale deeds of the properties sold, and other original relevant revenue records for verification of the properties as agricultural land or not by the Assessing Officer. The Assessing Officer is accordingly directed to verify complete documentary evidences for the claim of the assessee that the lands sold by it are agricultural land and it had been used for agricultural cultivation and in case, if the assessee fails to furnish complete documentary evidences for verification, the assessment already completed and confirmed the ld. CIT(A) stands sustained.
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