TMI Blog2019 (6) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... ing higher disallowance suo motu made in the return of income in the light of the decision of CIT vs. Pruthvi Brokers and Shareholders P. Ltd. [ 2012 (7) TMI 158 - BOMBAY HIGH COURT] . We accordingly set aside the order of the CIT(A) and direct the AO to restrict the disallowance MAT computation - Excessive adjustments on account of disallowance u/s 14A under special provisions of Section 115JB - HELD THAT:- In the light of decision of Special Bench in Vireet Investment (supra) and in view of findings given by the co-ordinate bench in assessee s own case concerning AY 2012-13 we find substantial merit in the plea of the assessee to restrict the adjustments in respect of disallowance relatable to exempt income notwithstanding higher adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) in short), dated 15.06.2017 arising in the assessment order dated 17.02.2016 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2013-14. 2. The assessee has raised several grounds but explained in the Bar that it is aggrieved by the order of the CIT(A) on account of three broad issues; (1) excessive disallowance under s.14A r.w. Rule 8D(2)(iii), (2) excessive adjustments on account of disallowance under s.14A under special provisions of Section 115JB of the Act (3) disallowance of bad debts in respect of unrealized rent. 3. Addressing the first issue towards disallowance under s.14A under the normal provisions of the Act, the learned AR pointed ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TD 27 (Del) wherein it has been held by the Special Bench that investments not yielding any income during the year has to be excluded while calculating the average investments and the disallowance has been to be worked out only thereafter on the basis of investment actually yielding tax free income. We therefore find substantial merit in the case of the assessee. We also notice that identical issue has been adjudicated in favour of the assessee in its own case concerning AY 2011-12 in ITA No. 414/Mum/2017 dated 24th July, 2018. At this stage, we also observe that the assessee was entitled to claim revision of disallowance notwithstanding higher disallowance suo motu made in the return of income in the light of the decision of Hon ble Bombay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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