9911796707
TMI Blog2021 (6) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... erage 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. Inclusion of an amount on the basis of Form 26AS to the returned income of the assessee - HELD THAT:- We find, that as per Form 26AS commission income stated to have been received from Abu Dhabi Commercial Bank Ltd. Churchgate Branch stands reflected in the annual tax statement of the assessee. In rebuttal, it is submitted by the ld. A.R that no part of the afore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt Act ), dated 11.02.2016 for A.Y. 2013-14 2. Briefly stated, the assessee firm had filed its return of income for A.Y. 2012-13 on 05.08.2013, declaring a total income of ₹ 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 ₹ 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. It was further submitted by the ld. A.R that the A.O had wrongly made an addition w.r.t an amount of ₹ 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 ₹ 73,20,896/-. Against the aforesaid exempt income, the assessee had on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rage value of investments while quantifying the disallowance under Sec. 14A r.w. Rule 8D (2)(iii). Our aforesaid view is fortified 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
