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TMI Blog2020 (6) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, for the sake of convenience and they are heard together and disposed of by way of this common order. 3. We have heard rival contentions, considered the papers on record and the orders of the authorities below as well as the case was cited, we held as follows. 4. First we take up the department appeal in ITA No. 1626/Kol/2018 for the assessment year 2012-13. The grounds of appeal are as follows: "1. Whether on the facts and circumstances of the case, the Ld. CIT(A) was justified in directing to re-compute the disallowance under Rule 8D(2)(iii) on the average value those shares which have yielded the exempted dividend income notwithstanding the facts that those shares were hold as strategic investment. 2. Whether on the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le High Court held as follows "We do not find any error in law on the part of the Tribunal in its decision on this point. The other question of law suggested by the Revenue was on determination of annual value of certain property of the assessee, being a farm house near New Delhi. The Assessing Officer had undertaken a valuation exercise to come to his conclusion that the rent disclosed by the assessee is much lower than the market value. He has referred to a website www.99acres.com. from which he has referred to higher figures of rent. But this court has consistently held that agreed rent would be the determinant factor for valuation and not the rent revealed from the market search. The authorities on this point are Commissioner of Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the AO should have examined the actual expenditure incurred in relation to exempted income, along with common attributable expense after excluding specific expense which are related to non-exempted income, prior to applying Rule 8D & as such disallowance is excessive & unreasonable & is required to be reworked. 4. That the appellant craves leave to add, amend, modify, rescind, supplement or alter any of the grounds stated here-in-above either before or at the time of hearing of the appeal." 11. All the grounds of appeal pertain to the sole issue on quantification of disallowance u/s 14A. The learned counsel for the assessee submitted that application of Rule 8D by the Assessing Officer was bad in law for the reason that proper satisfa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. 12. In the result, the appeal of the assessee is allowed for statistical purposes. ITA No. 1627/Kol/2018 13. Grounds of appeal by the Revenue read as follows: "1. Whether on the facts and circumstances of the case, the Ld. CIT(A) was justified in directing to re-compute the disallowance under Rule 8D(2)(iii) on the average value those shares which have yielded the exempted dividend income notwithstanding the facts that those shares were hold as strategic investment. 2. Whether on the facts and circumstances of the case Ld. CIT(A) was justified in deleting addition made u/s 14A to the book profit of the assessee. 3. Whether on the facts and circumstances of the case, the Ld. CIT(A) was justified in allowing the ALV of Rs. 3,60,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e similar to those raised in assessee's appeal for A.Y. 2012-13 and as the facts are identical, consistent with the view taken by us while disposing of the appeal for A.Y. 2012-13 for the very same reason, we set aside this issue to the file of the Assessing Officer with the direction to dispose of the issue by applying our directions on this issue for the A.Y. 2012-13. 20. In the result, the appeal of the assessee is allowed for statistical purposes. 21. Before parting, it is noted that the order is being pronounced after ninety (90) days of hearing. However, taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. For coming to such a conclusion, we r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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