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TMI Blog2019 (5) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... COUNTANT MEMBER: The present appeal has been preferred by the assessee against the order dated 27.11.2013 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2011-12. 2. The various grounds raised by the assessee are as under: "1. The learned CIT(A) erred in confirming the action of the Assessing Officer of confirming the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noring the fact that while working out such disallowance, only those investments which have yielded dividend income during the year has to be considered for the purposes of computing average value of investments. The Appellant craves leave to add to, alter or amend the above Grounds of Appeal as and when advised." 3. Ground No.1 is general in nature and needs no adjudication. 4. The issue rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income without applying the rule 8D(2). The AO invoked rule 8D(2) and accordingly computed the disallowance at Rs. 17,50,450/- comprising only disallowance under rule 8D2(iii) and after allowing the deduction of suo-moto disallowance, a net addition of Rs. 17,18,351/- was made to the income of the assessee vide order dated 27.11.2013 passed under section 143(3) of the Act. 7. After hearing both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lded exempt income during the year. We, therefore, respectfully following the co-ordinate bench of the Tribunal, direct the AO to compute the disallowance after taking into account only those investments which yielded exempt income and for the purpose of average investment. Ground No.3 is allowed. 8. In the result, the appeal of the assessee is partly allowed. Order pronounced in the open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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