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2021 (7) TMI 719 - ITAT DELHIDisallowance u/s 14A r.w.r.8D - HELD THAT:- For A.Y. 2012-12 addition u/r. 8D(2)(ii) detailed explanation being given in the foot notes according to which these loans are for various phases of power projects at Orissa; that such interest expenses is not allocable to the exempt income; and that there is no nexus between the interest paid and claimed as expenditure and the exempt income and therefore no disallowance u/r. 8D(2)(ii) of the Rules is called for. In respect of assessment years 2013-14 and 2014-15 as per detailed explanation given in the foot notes of the audited accounts these loans are for various phases of power projects at Orissa; that the interest expenses is not allocable to the exempt income; and that there is no nexus between the interest paid and claimed as expenditure and the exempt income and therefore no disallowance u/r. 8D(2)(ii) of the Rules is called for. While applying the law laid down by Hon'ble jurisdictional High Court in the case of CIT vs. Indian Sugar Exim Corporation Ltd [2012 (3) TMI 100 - DELHI HIGH COURT], CIT vs. Taikisha Engineering India Ltd. . [2014 (12) TMI 482 - DELHI HIGH COURT] and CIT vs. HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT] CIT(A) directed the deletion of interest component u/r. 8D(2)(ii) of the Rules for all these three years. No illegality or irregularity in the findings of the ld. CIT(A) in deleting the interest component u/r. 8D(2)(ii) of the Rules. Though the CIT(A) confirmed the addition of disallowance under rule 8D(2)(iii), the assessee had already suo moto disallowed the same and it does not require any interference. MAT computation - Direction of the ld. CIT(A) to recompute the MAT payable by assessee after excluding the disallowance u/s. 14A of the Act, such a finding is fortified by the decision of Special Bench of this Tribunal in the case of ACIT vs. Vireet Investment (P) Ltd. [2017 (6) TMI 1124 - ITAT DELHI]. We, therefore, confirm the same and dismiss the appeals of the Revenue
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