9911796707
TMI Blog2021 (2) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... 8D(2)(iii) taking the average investment from which the exempt income is received. Following the above decision, we direct the AO to calculate the disallowance under rule 8D(2)(iii) in line with the above decision. The assessee is directed not to take any unnecessary adjournments for early disposal of the appeal. Needless to say that reasonable opportunity may be given to the assessee Accordingly, the grounds raised by the assessee in this regard are treated as allowed for statistical purposes. - P. Madhavi Devi , Member ( J ) And Laxmi Prasad Sahu , Member ( A ) For the Appellant : B. Satyanarayana Murthy For the Respondents : Sunil Kumar Pandey ORDER Laxmi Prasad Sahu, Member (A) This is an appeal filed by the assessee directed against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the balance sheet amounting to ₹ 3,22,42,44,500/-, rejecting the disallowance of computation under rule 8D(2)(iii) filed by the assessee before him, which was extracted by the CIT(A) in his order at page 5. 3. Aggrieved by the order of CIT(A), the assessee is in appeal before the Tribunal. 4. Before us, the ld. AR of the assessee submitted that the computation of disallowance under rule 8D(2)(iii) made was submitted before the CIT(A), but, he has not considered the same, as the disallowance should be made on those investments, in which, the exempt income has been received, but, not on the entire investments. He, therefore, contended that the calculation made by the assessee and submitted before the CIT(A), should have been accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which does not or shall not form part of the total income. It is clear that we have to include those investments which has generated income and exclude those investments, which have not generated income. In the present case, AO had taken the total investment instead of those investments, which have generated income. Accordingly, we direct the AO to calculate the disallowance of interest as below (as per rule 8D): Interest X Investment(which generated income)/Average total assets The main reason is that as per section 14A, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income, which is exempt from tax. The relevance is the expenditure in relation to income. The quantification has to be underta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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