TMI Blog2019 (5) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... which yield exempt income during the year? - HELD THAT:- We find merit in the submissions of the Ld. A.R. and that only those investments yielding exempt income has to be considered for calculating the average investments. The issue is squarely covered by the decision of Tribunal in the case of ACIT vs. Vireet Investments [ 2017 (6) TMI 1124 - ITAT DELHI] wherein it has been held that only those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2013 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2011-12. 2. The various grounds raised by the assessee are as under: 1. The learned CIT(A) erred in confirming the action of the Assessing Officer of confirming the disallowance of ₹ 17.18.351/- under Section 14A of the Income-tax Act, 1961 (&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such disallowance, only those investments which have yielded dividend income during the year has to be considered for the purposes of computing average value of investments. The Appellant craves leave to add to, alter or amend the above Grounds of Appeal as and when advised. 3. Ground No.1 is general in nature and needs no adjudication. 4. The issue ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 14A towards an exemption income without applying the rule 8D(2). The AO invoked rule 8D(2) and accordingly computed the disallowance at ₹ 17,50,450/- comprising only disallowance under rule 8D2(iii) and after allowing the deduction of suo-moto disallowance, a net addition of ₹ 17,18,351/- was made to the income of the assessee vide order dated 27.11.2013 pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se investments are to be considered for computing average value of investments which yielded exempt income during the year. We, therefore, respectfully following the co-ordinate bench of the Tribunal, direct the AO to compute the disallowance after taking into account only those investments which yielded exempt income and for the purpose of average investment. Ground No.3 is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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