TMI Blog2018 (8) TMI 2024X X X X Extracts X X X X X X X X Extracts X X X X ..... f this view reliance can be placed on the ITAT, Hyderabad Special Bench in the case of ACIT vs. M/s. Progressive Constructions Pvt Ltd ( [ 2017 (3) TMI 1167 - ITAT HYDERABAD] - Similarly in the light of the decision of the Delhi Special Bench decision in the case of ACIT vs. Vireet Investments Pvt Ltd. [ 2017 (6) TMI 1124 - ITAT DELHI] the value of investment which yielded exempt income alone be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised the following grounds of appeal: - 1. Ld. CIT(A) erred on both facts and law of the case. 2. Ld. CIT(A) ought to have considered that any investment which is yielding or likely to yield exempt income falls within the ambit of section 14A and expenditure in relation to such investments has to be computed as per the formula in Rule 8D and there is no exemption in case where no exempt in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer vide order dated 16.12.2015 passed u/s 143(3) of the Act at a total income of ₹ 2,59,44,793/-. While doing so, Assessing Officer made disallowance of ₹ 2,88,27,078/ - u/s 14A read with Rule 8D as against the exempt income of ₹ 24,55,248/ -. Being aggrieved by the above disallowances, an appeal was filed before the CIT(A), who vide the impugned order directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , dt 06.07.2018) which is relevant for the proposition that the amount of disallowance cannot exceed exempt income. He further submitted that for the purpose of computing the average value of investments for computing the amount of disallowance under Rule 8D, the only investments which yielded exempt income alone be considered. 6. We have heard the rival submissions and perused the material on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of disallowance u/s 14A. We find that the order of the CIT(A) is in consonance with the ratios laid down by the Special Benches and therefore, we do not find any reason to interfere with the order of the CIT(A). Accordingly, grounds raised by the Revenue are dismissed. 7. In the result, appeal filed by the Revenue is dismissed. Pronounced in the open Court on 17th August, 2018. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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