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TMI Blog2018 (7) TMI 2130X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent : Shri A. Sasikumar, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -3, Chennai, dated 30.08.2017 and pertains to assessment year 2013-14. 2. The only issue arises for consideration is disallowance of 5,37,254/- under Section 14A of the Income-tax Act, 1961 (in short 'the Act&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that only those investments which yield exempted income alone need to be considered. If any such investment, which does not give any income, the same cannot be considered for disallowance. 4. We heard Shri A. Sasikumar, the Ld. Departmental Representative, also. We have gone through the provisions of Rule 8D(2)(iii) of the Income-tax Rules, 1962 as it exists at the relevant point of time which re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm part of total income of the assessee alone has to be considered. The Special Bench of Delhi Bench of this Tribunal considered an identical issue and found that only those investments which yielded exempted income during the year alone has to be considered. In fact, the Special Bench has observed as follows at para 11.1 of its order:- "11.1 In the present case, our decision is restricted only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting average value of investment which yielded exempt income during the year." 7. In view of the above, this Tribunal is of the considered opinion that only those investments which yielded exempted income alone has to be considered for the purpose of disallowance under Rule 8D(2)(iii). Therefore, we are unable to uphold the orders of the authorities below. Accordingly, the orders of both the auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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