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TMI Blog2015 (4) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... t disallowance of .05%. In view of the above reasoning, the findings of the ITAT and the lower authorities are hereby set aside. The appeal is allowed and the matter is remitted to work out the tax effect to the AO who shall do so after giving due notice to the party. - Decided in favour of assessee for statical purposes. - ITA 615/2014 - - - Dated:- 24-3-2015 - S. Ravindra Bhat And R.K.Gauba JJ. For the Appellant : Mr. Salil Kapoor and Mr. Vikas Jain, Advs. For the Respondent : Mr. N P Sahni, sr. standing counsel MR. Justice S. Ravindra Bhat (OPEN COURT) CM No.16296/2014 Exemption is allowed subject to all just exceptions. The application is disposed of. CM No.16297/2014 For the reasons mentioned i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appealed, restored the AO s determination holding it to be a true calculation in terms of Rule 8D. It is argued by the assessee that since CIT(Appeals) correctly noted the facts as to the value of the investment in tax exempt investment, and at the same time noticed that the ultimate result on an application of .05% disallowance would be same. Counsel for the revenue on the other hand, submitted that given the determination of average value of investment, the AO had no choice but to apply Rule 8D(2) in view of mandate of section 14A which required him to apply the prescribed method of determining disallowance. Facts as disclosed by the AO, who expressed his opinion that the claim of the assessee for no disallowance was warranted since no ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est other than the amount of interest included in clause (i) incurred during the previous year; B = the average of 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; C = the average of total assets as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year ; (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. (3) For the purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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