TMI Blog2017 (9) TMI 1882X X X X Extracts X X X X X X X X Extracts X X X X ..... . This ground of appeal is allowed for statistical purpose. Disallowance made u/s 14A while computing the book profits u/s 115 JB - HELD THAT:- We direct the Assessing Officer to compute the book profits in accordance with directions of the Hon'ble Special Bench in the case of ACIT v. Vireet Investments Private Limited (supra). Disallowance under 115JB for working out book profits as adopted by the Assessing Officer u/s 14A of the Act - HELD THAT:- Ground of appeal is restored to the file of the Assessing Officer to compute the book profits u/s 115JB in view of the decision of the Delhi Special Bench in the case of ACIT v. Vireet Investments Private Limited (supra) wherein it has been held that computation under Clause(f) of E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench decision in the case of ACIT v. Vireet Investments Private Limited (supra) directed the Assessing Officer to recompute the disallowance under Rule 8D2(iii) keeping in view the decision of the Hon'ble Special Bench by considering only those investments which yielded dividend income during the Assessment Year observing as under:- 18. We have heard both the parties perused the orders of the authorities below and the decisions relied on. The Assessing Officer in this case noticed that assessee has received huge dividend income and also there was suo moto disallowance by the assessee towards expenses @ 0.5% of average investments at ₹.5,27,66,409/- and ₹.5,76,30,721/- for the Assessment Years 2009-10 and 2010-11 respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tfully following the said decision we hold that the disallowance computed u/s 14A r.w. Rule 8D by the Assessing Officer is not correct. Thus we restore this issue to the file of the Assessing Officer with a direction to re-compute the disallowance under Rule 8D(2)(iii) in view the decision of the Delhi Bench in the case of ACIT v. Vireet Investments Private Limited (supra) by considering only those investments which yielded dividend income during the Assessment Years 2009-10 and 2010-11. This common Ground is allowed for statistical purpose. 6. Thus, respectfully following the said decision, we restore this issue to the file of the Assessing Officer with a direction to recompute the disallowance under Rule 8D2(iii) by considering only t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he disallowance at ₹.35,00,000/- under 115JB for working out book profits in respect of ₹.4.62 Crores as adopted by the Assessing Officer u/s 14A of the Act. 11. This ground of appeal is restored to the file of the Assessing Officer to compute the book profits u/s 115JB in view of the decision of the Delhi Special Bench in the case of ACIT v. Vireet Investments Private Limited (supra) wherein it has been held that 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 I.T. Rules. The grounds raised by the revenue in its appeal on this issue is allowed for statistical purpose. 12. In the result appeal of the assessee as well ..... X X X X Extracts X X X X X X X X Extracts X X X X
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