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TMI Blog2018 (7) TMI 2059X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent : Dr. P. V. Pradeep Kumar, Addl.CIT (DR) ORDER Per INTURI RAMA RAO, AM : This is an appeal filed by the assessee directed against the order of the learned Commissioner of Income-tax (Appeals)-5, [CIT(A)], Bengaluru, dated 03/01/2018 for the assessment year 2014-15. 2. The revenue raised the following grounds of appeal: 3. Briefly, the facts of the case are that the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,246/- under clause (iii) of rule 8D of IT Rules by adopting ½% of average value investments. 4. Being aggrieved by the above order, an appeal was preferred before the ld.CIT(A) who vide impugned order confirmed the action of the AO. It is contended before the ld.CIT(A) that the amount of disallowance should be restricted to exempt income of Rs. 96,116/- and the investments which has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of rule 8D, the only investments which yielded exempt income should alone be considered. Reliance in this regard was placed on the decision of the Special Bench of Tribunal (Delhi) in the case of ACIT vs. Vireet Investment (P) Ltd. 82 taxmann.com 415/165 ITD 27. On the other hand, learned Departmental Representative placed reliance on the orders of the lower authorities. 6. We heard rival su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, no contrary view can be taken under these circumstances. We, accordingly, hold that only those investments are to be considered for computing average value of investment which yielded exempt income during the year." Thus the proposition that the amount of disallowance cannot exceed exempt income is settled. Accordingly, we hold that the disallowance cannot exceed the amount of exempt i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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