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TMI Blog2020 (10) TMI 1245X X X X Extracts X X X X X X X X Extracts X X X X ..... S. Sridhar, Advocate Respondent by: Shri AR.V. Sreenivasan, Addl. CIT ORDER PER DUVVURUL RL REDDY, JUDICIAL MEMBER: This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 8, Chennai dated 07.09.2017 relevant to the assessment year 2013-14. The effective ground raised in the appeal of the assessee relates to confirmation of disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in appeal before the Tribunal. By referring to the financial statements filed in the form of paper book, the ld. Counsel for the assessee has submitted that the assessee has sufficient own funds/internal accruals for making investments. The interest expenditure incurred by the assessee should not have been disallowed under section 14A r.w. Rule 8D since no part of the borrowed funds were used b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the expenditure attributable for earning such exempt income by applying Rule 8D and brought to tax an amount of Rs. 29,75,079/-. Before the ld. CIT(A), the assessee has filed the computation of income and financials of the assessee for the year under consideration. From the details furnished by the assessee, the ld. CIT(A) has observed that the assessee has received a dividend of Rs. 35,90,592/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Rs. 4,83,82,452/-. Therefore, it was the submission that the assessee made the investment in shares out of his own fund. Though the assessee has borrowed an amount of Rs. 20 crores, the said amount has nothing to do with the investments made by the assessee. The said facts are not discussed in the assessment order while concluding the assessment. 4.1 On perusal of the assessment order, we fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 8D(2)(iii) is concerned, the Assessing Officer is directed to consider only those investments for computing average value of investment which yielded exempt income during the year under consideration as per Rule 8D(2)(iii) in view of the Delhi Special Bench of the Tribunal in the case of ACIT v. Vireet Investment (P) Ltd. (2017) 165 ITD 27 (Delhi)(SB) and to pass detailed order on both ..... X X X X Extracts X X X X X X X X Extracts X X X X
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