TMI Blog2018 (10) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... D of the Rules in the decision cited supra, we remit back the matter to the file of Ld.AO to compute the disallowance U/s.14A of the Act in the similar manner. - Decided in favour of assessee for statistical purposes - I.T.A. No. 106/Chny/2018 - - - Dated:- 20-8-2018 - Shri A. Mohan Alankamony, Accountant Member And Shri Duvvuru RL Reddy, Judicial Member For the Appellant : Shri R. Vijayaraghavan, Advocate For the Respondent : Shri AR.V. Sreenivasan, JCIT ORDER PER A. MOHAN ALANKAMONY, AM:- This appeal by the assessee is directed against the order passed by the learned Commissioner of Income Tax(Appeals)-3, Chennai, dated 29.09.2017 in ITA No.165/16-17/A-3 for the assessment year 2014-15 passed U/s. 250(6) r.w.s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nses incurred by it with respect to investments earning exempt dividend then the same should be disallowed. Only when such computation is not possible Rule 8D should be applied for computing the disallowance U/s.14A of the Act. The relevant portion of the order is reproduced herein below for reference:- 5.2 We have heard the rival submissions and carefully perused the materials on record. It is apparent from the facts of the case, that the assessee has made huge investments in shares which earn dividend income exempt from tax. According to Section 14A of the Act the expenditure incurred towards earning exempt income cannot allowed as deduction from the taxable income of the assessee. In the case of the assessee, it is evident that for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to the extent of exempt income earned by the assessee. However since the assessee has not computed its actual expenditure incurred towards the investment that earns exempt income, in the interest of justice, we remit back the matter to the file of Ld.AO for both the assessment years thereby affording one more opportunity to the assessee to work out the actual expenditure incurred by it towards the investment that earn exempt income and disallow the same. We further hereby direct the Ld.AO to verify the computation submitted by the assessee for both the assessment years and thereafter decide the matter in accordance with law and merit. Since we have already decided the issue with respect to computation of disallowance U/s.14A r.w.r. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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