9911796707
TMI Blog2021 (6) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... see firm had filed its return of income for A.Y. 2012-13 on 05.08.2013, declaring a total income of Rs. 1,08,26,240/-. The return of income was initially processed as such under Sec. 143(1) of the Act. Subsequently, the case of the assessee was selected for scrutiny assessment under Sec. 143(2) of the Act. Observing that the assessee had offered a suo moto disallowance under Sec. 14A r.w. Rule 8D(2)(iii) of Rs. 548/-, the A.O was of the view that the assessee while computing the 'average value of investments' for the purpose of quantification of the said disallowance had erroneously excluded its mutual fund investments. Accordingly, by including the mutual fund investments for the purpose of computing the 'average value of investments' with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 13,758/- as stood reflected in the assessee's ITS details under 26AS, loosing sight of the specific claim of the assessee that no part of the said amount belonged to it. 5. Per contra, the ld. Departmental Representative (for short 'D.R') relied on the orders of the lower authorities. 6. We have heard the authorized representatives for both the parties, perused the orders of the lower authorities and the material available on record. As is discernible from the records, the assessee during the year in question had earned exempt dividend income of Rs. 73,20,896/-. Against the aforesaid exempt income, the assessee had on a suo motto basis worked out the disallowance under Sec.14A r.w. Rule 8D(2)(iii) at Rs. 548/-. On a perusal of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified by the order of the ITAT, Special bench in the case of ACIT & Anr. Vs. Vireet Investment Pvt. Ltd. & Anr. (2017) 165 ITD 27 (De)(SB). In the said case it was observed by the Tribunal that as per rule 8D(2)(iii), only those investments were to be considered for computing 'average value of investment' which had yielded exempt income during year under consideration. Accordingly, in the backdrop of our aforesaid deliberations, we herein direct the A.O to exclude the mutual funds which had not yielded any exempt income during the year for the purpose of quantifying the disallowance under Sec. 14A r.w. Rule 8D(2)(iii) in the hands of the assessee. 8. As regards the inclusion of an amount of Rs. 13,758/- on the basis of Form 26AS to the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
