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TMI Blog2019 (6) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... rule 8D, only those investments which yielded exempt income have to be considered. Considering the above facts and circumstances, we restore this disputed issue to the file of the AO to recompute the disallowance where only dividend yielding investment has to be considered for the purpose of calculation of average value of investments under rule 8D(2)(iii). Accordingly, the ground of appeal of the assessee are allowed for statistical purposes. Disallowance of long-term retention bonus - AR contention that bonus paid to employees has to be allowed - HELD THAT:- AO has considered the provision of long-term retention bonus as an ascertained liability and it was not paid before due date of filing of Return of income u/s 139(1) and disallowed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w the claim u/s 10A and the ground of appeal of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... s it was already reduced from the export turnover. The abovementioned reduction needs to be made in the light of the decision of the Hon'ble jurisdictional High Court of Karnataka. 8. The learned CIT (Appeals) erred in confirming the levy of Interest under Section 234B of the Act. 9. For these and such other grounds that may be urged at the time of hearing, the Appellant prays that the appeal may be allowed." 3. Brief facts of the case are that the assessee is in the business of property development and filed the return of income on 28/09/2009 with book profits u/s 115 JB of ₹ 23,97,38,525/-. The case was selected for scrutiny and notices u/s 143(2) and 142(1) were issue. In compliance, AR of the assessee appeared on various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only from export turnover and not from total turnover and restricted the claim of deduction u/s 10A of the Act and determined the total income and passed the order u/s 143(3) r.w.s. 144C dated 18/3/2013. 4. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). Whereas the CIT(A) has not granted the relief on the disputed issues but granted relief on other additions and partly allowed the appeal of the assessee. 5. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Tribunal. The learned AR of the assessee on the issue of disallowance u/s 14A submitted that the CIT(A) has erred in confirming the addition made by the AO where no expenditure was incurred by the assessee and the application of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out by the learned AR that the AO has considered the value of all investments as on 1/4/2008 and as on 31/3/2009 and calculated. In the Special Bench decision of Tribunal rendered in the case of Vireet Investments (165 ITD 27)(Del.), it has been held that where for the purpose of calculation of disallowance under rule 8D, only those investments which yielded exempt income have to be considered. Considering the above facts and circumstances, we restore this disputed issue to the file of the AO to recompute the disallowance considering the decision of the Special Bench in the case of Vireet Investments(supra) where only dividend yielding investment has to be considered for the purpose of calculation of average value of investments und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign currency for providing technical services outside India, by allowing the deduction only from export turnover. The learned AR relied on the decision of the jurisdictional High Court in the case of Tata Elxsi (supra) where the Hon'ble High Court held that for the purpose of computing exemption u/s 10A, when the export turnover in the numerator is to be arrived at after excluding communication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the donominator. We, relying on the decision of the jurisdictional High Court and direct the AO to reduce the expenses incurred in foreign exchange from the export turnover as well as total turnover and allow the claim u/s 10A and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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