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TMI Blog2021 (4) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... d during the year. Therefore, keeping in view the ratio laid down in various decisions, including, the decisions of Hon ble jurisdictional High Court, supra, we uphold the decision of learned Commissioner (Appeals) in restricting the disallowance under section 14A to the extent of exempt income earned during the year. Disallowance under section 14A r.w.r. 8D while computing book profit under section 115JB - As squarely covered in favour of the assessee by the decision in case of CIT vs Vireet Investments (P) Ltd [ 2017 (6) TMI 1124 - ITAT DELHI] Though, under Explanation I(f) to section 115JB of the Act, the assessing officer is empowered to disallow expenditure attributable to exempt income; however, the assessing officer has to iden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the assessee has shown investment of ₹ 458,38,23,734/- as on 31-03-2013, as compared to ₹ 441,38,63,638/- as on 31-03-2012. Further, the assessee has debited an amount of ₹ 1,99,89,21,721/- towards interest expenditure. On noticing these facts, the assessing officer called upon the assessee to explain why disallowance of expenditure for earning the exempt income should not be computed in terms of section 14A r.w.r. 8D. In response to the query raised by the assessing officer, the assessee furnished detailed submission stating that as against exempt income earned by way of dividend amounting to ₹ 2,46,56,969/- during the year, the assessee has already disallowed an amount of ₹ 67,34,981/- under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be made in terms of Rule 8D. Further, he submitted, Explanation I(f) to section 115JB empowers the assessing officer to make disallowance of expenditure for earning exempt income. 5. Per contra, the learned Counsel for the assessee strongly relied upon the observations of learned Commissioner (Appeals). Further, he relied upon the decisions of the Hon ble Bombay High Court in case of PCIT Vs. HSBC Invest Direct (India) Ltd. in Income Tax Appeal no.1672 of 2016 dated 4th February, 2019 and in case of M/s. Nirved Traders Pvt. Ltd. Vs. DCIT in Income Tax Appeal no. 149 of 2017 dated, 23 April, 2019. Insofar as the issue of disallowance under section 14A while computing book profit under section 115JB, learned Counsel strongly relied u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the ITAT, Special Bench, New Delhi, in case of CIT vs Vireet Investments (P) Ltd (supra). Though, under Explanation I(f) to section 115JB of the Act, the assessing officer is empowered to disallow expenditure attributable to exempt income; however, the assessing officer has to identify the expenditure incurred by the assessee which is directly attributable to earning of exempt income. In the facts of the present case, the assessing officer has not identified any such expenditure. Therefore, we do not find any reason to interfere with the decision learned Commissioner (Appeals) on the issue. Grounds raised are dismissed. 8. In the result, appeal is dismissed. Order pronounced on 05/03/2021. - - TaxTMI - TMITax - Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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