TMI Blog2021 (6) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi High Court in the case of ACB India Ltd. Vs. Assistant Commissioner of Income Tax [ 2015 (4) TMI 224 - DELHI HIGH COURT ] and the decision of Marg Ltd. Vs. CIT, [ 2020 (10) TMI 102 - MADRAS HIGH COURT ] and followed subsequently by the Hon'ble Madras High Court in the case of CIT Vs. Shriram Ownership Trust [ 2020 (12) TMI 736 - MADRAS HIGH COURT ] and also by the Karnataka High Court in the case of Pragathi Krishna Gramin Bank [ 2018 (6) TMI 1283 - KARNATAKA HIGH COURT ] We find merit in the submissions made on behalf of the appellant that the amount of investment which yielded exempt income alone should be taken into consideration for the purpose of arriving at average value of investment as envisaged under sub clause (iii) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the appellant is a company incorporated under the Companies Act, 1956 and engaged in the business of investment in shares and securities and brokerage. The return of income for the assessment year 2013-14 was filed on 28.09.2013 declaring total income of ₹ 1,36,49,310/-. The scrutiny assessment was completed u/s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by the Deputy Commissioner of Income Tax, Circle-4, Pune (in short 'the AO') vide order dated 29.01.2016 at total income of ₹ 1,47,77,369/-. While doing so, the Assessing Officer made addition of ₹ 11,87,427/- u/s. 14A of the Act rejecting the contention of the appellant that no indirect expenditure was incurred to earn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision of the Hon'ble Delhi High Court in the case of ACB India Ltd. Vs. Assistant Commissioner of Income Tax, 374 ITR 108 (Delhi). 7. On the other hand, the ld. CIT-DR placed strong reliance on the order of the ld. Commissioner of Income Tax (Appeal). 8. We have heard the rival contentions and perused the materials available on record. The only issue that arises for consideration is manner of computing the amount of disallowance under sub clause (iii) of sub-rule (2) of Rule 8D of the Rule. The issue as regards to the applicability of provision of section 14A of the Act is not under challenge before us. The Hon'ble Special Bench of Income Tax Appellate Tribunal, Delhi in the case of Asstt. CIT Vs. Vireet Investment (P) Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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