TMI Blog2021 (3) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... as been taken by the Special Bench of the Tribunal in the case of ACIT vs. Vireet Investments (P) Ltd [ 2017 (6) TMI 1124 - ITAT DELHI] - In view of the afore referred precedents, we set aside the impugned order to this extent and remit the matter to the file of Assessing Officer for recomputing the disallowance under Rule 8D(2)(iii) by considering only such investments in calculating the average value of investments, which have yielded exempt income during the year. The assessee will be allowed hearing opportunity in the fresh proceedings. It is further made clear that while computing disallowance u/s. 14A, the suo motu disallowance offered by the assessee should be accordingly reduced. Claiming deduction of Education Cess on income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28,695/- to interest expenses. The Assessing Officer (AO) went through the details of expenses incurred by the assessee claimed to be in relation to the exempt income and observed several infirmities therein. It was seen that some of the investments were clubbed under the head 'Inventory' in the balance sheet and were not considered by the assessee in working out the disallowance. He, therefore, rejected the assessee's calculation and computed the disallowance u/s. 14A at ₹ 10,20,776/-, consisting of ₹ 30,183/- towards interest expenditure and ₹ 9,90,593/-, being, half percent of the average investments under rule 8D(2)(iii). No relief was allowed in the first appeal, against which the assessee has come up befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal in the case of ACIT vs. Vireet Investments (P) Ltd. (2017) 165 ITD 27 (Del) (SB). In view of the afore referred precedents, we set aside the impugned order to this extent and remit the matter to the file of Assessing Officer for recomputing the disallowance under Rule 8D(2)(iii) by considering only such investments in calculating the average value of investments, which have yielded exempt income during the year. The assessee will be allowed hearing opportunity in the fresh proceedings. It is further made clear that while computing disallowance u/s. 14A, the suo motu disallowance offered by the assessee should be accordingly reduced. 5. The assessee has taken an additional ground claiming deduction of Education Cess on inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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