TMI Blog2017 (11) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... e exempt income and the Assessing Officer had not given any reason for rejecting the stand taken by the assessee. In the circumstances we hold that there is no need to make any further disallowance more than what the assessee already disallowed suomoto. In the circumstances, we direct the Assessing Officer to delete the disallowance made u/s. 14A r.w. Rule 8D of the I.T. Rules for the Assessment Years 2008-09 and 2009-10. Investments in domestic companies inclusion for computing disallowance u/s.14A - whether dividend from domestic companies is not exempt from tax in view of section 115-O? - Held that:- This issue is decided against the assessee by the Supreme Court in the case of Godrej & Boyce Manufacturing Company Ltd [2017 (5) TMI 40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Institute of Chartered Accountants of India [ICAI] with respect to the provisions of section 145A - Held that:- On hearing both the parties and perusing the orders of the authorities below. we are of the considered view that this matter has to be restored to the file of the Assessing Officer for fresh adjudication and the contentions of the assessee are left open. - ITA.No.911 And 912/MUM/2014 And ITA.No.1328 & 1329/MUM/2014 - - - Dated:- 17-11-2017 - SHRI RAJENDRA, HON'BLE ACCOUNTANT MEMBER AND SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER For The Assessee : Shri Kirit R Kamdar For The Revenue : Shri Saurabh Kumar Rai Date of ORDER PER C.N. PRASAD (JM) 1. These appeals are filed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted the Assessing Officer to consider the interest disallowance only for three days while computing the disallowance u/s. 14A for the Assessment Year 2008-09 and for the Assessment Year 2009-10 accepting the submissions of the assessee that the interest expenditure incurred on investments are to be calculated considering the number of days for which the investments have been made. The computation of the assessee based on the submissions was considered by the Ld.CIT(A) wherein interest disallowance was arrived at ₹.6.64 Lakhs and the Assessing Officer is directed to verify the computation furnished by the assessee and recompute the interest disallowance accordingly. 4. Learned Counsel for the assessee before us submits that no sati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has held that if assessee possessed sufficient own funds, the presumption was that the investment was made from own funds and not from borrowed funds. Similar view has been taken in the case of CIT v. Reliance Utilities and Power Ltd [313 ITR 340]. Further we also observe that the assessee itself disallowed 10% of the dividend income at ₹.4,013/- and ₹.1,15,144/- for the Assessment Years 2008-09 and 2009-10 respectively at its own being the expenditure attributable for earing the exempt income and the Assessing Officer had not given any reason for rejecting the stand taken by the assessee. In the circumstances we hold that there is no need to make any further disallowance more than what the assessee already disallowed suomoto. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estments Private Limited [165 ITD 27] held that the computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s. 14A r.w. Rule 8D of the I.T Rules, 1962. Copy of the decision is placed on record. 11. Ld.DR supported the orders of the authorities below. 12. On hearing both the parties, we admit the additional grounds and we find that the Delhi Special Bench of the Tribunal in the case of ACIT v. Vireet Investments Private Limited (supra) held that the computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated u/s. 14A r.w. Rule 8D of the I.T Rules, 1962. Thus respectfully following the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he submits that the matter may be restored to the file of the Assessing Officer for verification and to allow the assessee deduction in any one of the years. 15. Ld.DR has no serious objection in sending back the matter to the Assessing Officer. 16. On hearing both the parties and perusing the orders of the authorities below. we are of the considered view that this matter has to be restored to the file of the Assessing Officer for fresh adjudication and the contentions of the assessee are left open. The Assessing Officer may examine this issue and allow relief to the assessee in accordance with law. 17. Coming to the Revenue s appeals, it is submitted that the Revenue effect is less than 10 lakhs and in view of the CBDT Circular No ..... X X X X Extracts X X X X X X X X Extracts X X X X
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