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TMI Blog2019 (2) TMI 1897X X X X Extracts X X X X X X X X Extracts X X X X ..... the Special Bench, ITAT Delhi decision in the case of Vireet Investments Private Limited (supra) wherein it was held that the computation u/s 115JB should be made without resorting to the computation as contemplated u/s 14A r.w. Rule 8D of the IT Rules, 1962. Accordingly, grounds raised by the assessee are allowed. - ITA No.294/Hyd/2018 - - - Dated:- 13-2-2019 - Smt. P. Madhavi Devi, Judicial Member And Shri S. Rifaur Rahman, Accountant Member Assessee by: Sri V. Raghavendra Rao Revenue by: Sri R. Mohan Reddy, DR ORDER Smt. P. Madhavi Devi, This appeal is filed by the assessee against the order of the CIT(A)-3, Hyderabad for the assessment year 2013-14. 2. Brief facts of the case are that the assessee-co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in appeal before us by raising the following grounds of appeal: 1. Ld. CIT(A) has erred on facts and in law, in dismissing the appeal of the assessee. 2. Ld. CIT(A) has erred in holding that the A.O. was satisfied about the applicability of section 14A to the facts of the case ignoring that in the assessment order the A.O. has omitted to consider the provisions of Rule 8D(1) of the IT Rules as evident from the assessment order. 3. Having regard to the expenses incurred which were only for maintaining the status of the assessee as a company, the CIT(A) is not justified in holding that the expenses are incurred in relation to the exempt incom Without prejudice 4. In computation of disallowance under Rule 8D(2)(iii), the investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and as at the end of the previous year for computation under Rule 8D(2)(iii). 4. It is the contention of the assessee that as per law the average of the investments that yielded the exempt income that is dividend income only have to be adopted for computation under Rule 8D(2)(iii). 5. The additional ground is regarding the interpretation of Rule 8D(2)(iii) and it is a legal ground. 6. No new facts which are not already part of the record require to be investigated for consideration of the additional ground. 7. It is humbly and respectfully prayed that the Additional Ground of appeal be kindly admitted and considered. If it is not admitted the assessee would miss the opportunity of their consideration by the Hon ble Bench. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT and one of such decisions is the decision of the Special Bench of Delhi ITAT in the case of Vireet Investments Private Limited (supra), wherein it has been held that the disallowance under Rule 8D(2)(iii) can be only of the average of investments which have yielded exempt income. Respectfully following the same, the additional grounds of appeal are allowed. 8. As regards the assessee s computation of income u/s 115JB of the Act, we find that this issue is also covered in favour of the assessee by the Special Bench, ITAT Delhi decision in the case of Vireet Investments Private Limited (supra) wherein it was held that the computation u/s 115JB should be made without resorting to the computation as contemplated u/s 14A r.w. Rule 8D of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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