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TMI Blog2022 (6) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in this case. We therefore in view of the aforesaid decision of Hon'ble Gujarat High Court direct the AO to working out the disallowance under Section 14A r.w. Rule 8D of the Income Tax Rules on the basis of the net interest under Rule 8D(2)(ii) of the Act. We thus direct accordingly. Thus the ground of assessee is partly allowed. - ITA No. 4872/Del/2019 - - - Dated:- 16-6-2022 - SH. ANIL CHATURVEDI , ACCOUNTANT MEMBER AND SH. NARENDER KUMAR CHOUDHARY , JUDICIAL MEMBER For the Appellant : C.S. Anand, Adv. For the Respondents : Zahid Parvez, Sr. D.R. ORDER Per Anil Chaturvedi, AM This appeal filed by the assessee is directed against the order dated 22.03.2019 of the Commissioner of Income Tax (Appeals)-33, N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res (rounded off). He also noted that assessee earned exempt income of Rs. 32,55,500/-. Assessee was therefore asked to furnish details of expenditure incurred for the purpose of earning exempt income and show-cause as to why no disallowance u/s. 14A r.w. Rule 8D be made to which assessee made the submissions which are not found acceptable to AO. AO thereafter by invoking the provision of Rule 8D worked out the total disallowance u/s. 14A at Rs. 44,35,384/- and made its disallowance. Aggrieved by the order of AO, assessee carried the matter before CIT(A) who by relying on the order of Delhi High Court in the case of Cheminvest Ltd. vs. CIT reported in 378 ITR 33 (Del) restricted the disallowance to Rs. 32,55,500/-, being the exempt income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. We have heard the rival submissions and perused the material available on record. The issue in the present ground is with respect to the disallowance u/s. 14A r.w.r. 8D. The assessee is aggrieved by disallowance made u/s. 14A r.w.r. 8D with respect to the working made under Rule 8D(2)(ii) i.e. with respect to the interest disallowance which has been worked out on the basis of gross interest expenses. Before us, Learned AR has pointed out from the audited Profit and Loss account for the year ended 31st March 2014 that during the year assessee had incurred interest expenditure of Rs. 1,65,42,226/- and has earned interest income aggregating to Rs. 1,43,14,662/- and thus the net interest expenditure incurred by assessee is to the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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