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2023 (9) TMI 108 - ITAT BANGALOREAddition u/s 14A r.w.r. 8D - action of the AO and the CIT(A) in considering the average investment value under Rule 8D(2)(iii) of the Rules - HELD THAT:- We are of the view that only investment yielding non-taxable income has to be considered and not all the investments. This proposition has been held correct in the case of ACB India Ltd., [2015 (4) TMI 224 - DELHI HIGH COURT] as held that for the purpose of section 14A, instead of taking into account total investment, the investment attributable to dividend (exempt income) was only required to be adopted and thereafter the disallowance was to be arrived. We hold that while calculating disallowance u/s 14A of the Act, only investment that have generated exempt income should be taken into consideration. See M/S INDIABULLS CAPITAL SERVICES LTD. [2019 (10) TMI 30 - SC ORDER] - Decided in favour of assessee.
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