TMI Blog2018 (7) TMI 2130X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 authorities below are set aside and the issue is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the matter and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961 (in short 'the Act') read with Rule 8D of the Income-tax Rules, 1962. 3. Shri C. Naresh, the Ld. representative for the assessee, submitted that for the purpose of disallowance under Section 14A of the Act read with Rule 8D(2)(iii), 0.5% of the average investment, income from which does not or shall not form part of the total income, as appearing in the balance she ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s it exists at the relevant point of time which reads as follows:- 8D(2)(iii) an amount equal to one-half per cent of the average of the value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year. 5. In view of the above, it is obvious that while comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the present case, our decision is restricted only to the extent of interpretation of language employed in Rule 8(2)(iii). The submission of ld. counsel for the assessee is that this issue is now covered by the decision of the Hon'ble Delhi High Court in the case of CIT v. Hofcin India (P.) Ltd. (supra), wherein it has been held that if no dividend income was earned, section 14A could not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below. Accordingly, the orders of both the authorities below are set aside and the issue is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the matter and restrict the disallowance in respect of such investments which yielded the exempted income, and which does not form of total income alone has to be considered for disallowance. 8. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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