TMI Blog2019 (7) TMI 1621X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidered for assessing the expenditure to earn the exempt income in view of the provisions u/s 14A of the Act r.w. Rule 8D(2)(iii) of the Rules. In the instant case, the whole investment has been considered for assessing the expenditure to earn the exempt income which is not justifiable. Accordingly, the finding of the CIT(A) is hereby order to be set aside and the issue is remanded to the AO to decide the matter of controversy afresh and to consider the investment which yielded exempt income for assessing the expenditure to earn the exempt income in view of the provisions u/s 14A of the Act r.w. Rule 8D(2)(iii) of the Rules in view of the decision of the special Bench in case of ACIT Vs. Vireet Investment P. Ltd(supra) in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8D(2)(iii) towards administrative cost. The appellant prays that disallowance of ₹ 3,35,369/- under rule 8D(2)(iii) is unjustified and the same may please be deleted. The appellant reserves its right to add, alter, amend or delete the grounds of appeal. 3. The brief facts of the case are that the assessee filed its return of income on 12.09.2012 declaring total income to the tune of ₹ 56,67,600/-. The return was processed u/s 143(1) of the Act. The case was selected for scrutiny under CASS. Notices u/s 143(2) 142(1) of the Act were issued and served upon the assessee. The assessee was engaged in Trading in Shares Securities, Lending and Borrowing of Money and Commission Agents. The assessee was deriving income by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arat High Court in case of PCIT Vs. Nirma Credit Capital P. Ltd. (Appeal No. 409 514 of 2017) and Hon ble ITAT Delhi in case of ACIT Vs. Keshav Shares Stock Ltd. (ITA. No.4394/Del/2011 decided on 26.04.2013 Delhi Bench. However, on the other hand, the Ld. Representative of the Department has refuted the said contention. On appraisal of the order passed by the AO, we find that the AO did not consider the interest net off against the interest received while deciding the interest expenditure in view of the provisions u/s 14A of the Act r.w. Rule 8D(2)(ii) of the Rules while deciding the interest expenditure. Net off interest is required to be assessed or not has been decided by Hon ble ITAT Mumbai Bench in case of DCIT Vs. M/s. Jubliant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 28,91,649/- are directly attributable to the division M/s. Jai Synthetic. The Ld. CIT(A) has directed the AO to recompute the disallowance on proportionate basis. Considering the details of expenses, we do not find any error in the findings of the Ld. CIT(A). Ground No. I 2 are accordingly dismissed. 6. This decision was confirmed by Hon ble Jurisdictional High Court in IT Appeal No.1512 of 2014 dated 28.02.2017. By following the decision mentioned above, we are of the view that the disallowance of interest expenses should be made after the net off interest only. Accordingly, this issue is decided in favour of the assessee against the revenue in the manner as indicative above. We order accordingly. ISSUE NO.3 7. Issue n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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