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2016 (1) TMI 1295

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..... for strategic purposes are required to be excluded. We, therefore, direct the AO to verify as if the assessee has net positive interest income during the year, then no disallowance of interest is to be made under section 8D(2)(ii) and further direct the AO to exclude the strategic investments made in subsidiaries while computing disallowance of administrative expenses under rule 8D(2)(iii) of the IT rules. - ITA No.1073/M/2013, ITA No.1067/M/2013 - - - Dated:- 8-1-2016 - SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER Assessee by : Shri Kirit Sheth, A.R. Revenue by : Shri Jeetendra Kumar, D.R. O R D E R Per Sanjay Garg, Judicial Member: The above captioned two appeals by different .....

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..... ew of the above, it cannot be assumed that the assessee has incurred interest expenditure for making investments for earning of exempt income. He has relied upon the decision of the co-ordinate bench of the Tribunal in this respect in the case of its sister concern M/s. White Water Mass Media Pvt. Ltd. vs. ACIT vide ITA No.2963/M/2013 order dated 17.09.14 and further in the case of M/s. Westex Infotech Pvt. Ltd. vs. ACIT in ITA No.2964/M/2013 vide order dated 17.09.14. The Ld. D.R., on the other hand, has relied upon the findings of the lower authorities. 4. We have considered the rival contentions and have also gone through the decisions relied upon by the Ld. A.R. of the assessee. We find that in identical circumstances, the co-ord .....

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..... der such circumstances for computing the average value of investment for the purpose of disallowance under rule 8D(2)(iii), the investments made in unquoted shares of the subsidiaries sister concerns/group companies for strategic purposes are required to be excluded. We, therefore, direct the AO to verify as if the assessee has net positive interest income during the year, then no disallowance of interest is to be made under section 8D(2)(ii) and further direct the AO to exclude the strategic investments made in subsidiaries while computing disallowance of administrative expenses under rule 8D(2)(iii) of the IT rules. ITA No.1073/M/2013 7. The facts and issues involved in this appeal are identical to the appeal No.1067/M/2013 of .....

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