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TMI Blog2022 (5) TMI 1438X X X X Extracts X X X X X X X X Extracts X X X X ..... ome during the year, as per ratio laid down in various judicial precedents, they cannot be considered for computing disallowance under Rule 8D(2)(iii). As relying on Caraf Builders Constructions (P.) Ltd. [ 2018 (12) TMI 410 - DELHI HIGH COURT ] we direct the Assessing Officer to factually verify assessee s claim with reference to the working of the investments which have either yielded taxable income or not yielded any income and, thereafter, compute the disallowance by considering only those investments which have yielded exempt income during the year. X X X X Extracts X X X X X X X X Extracts X X X X ..... er (Appeals). 4. The only submission made before us by learned counsel for the assessee is to the effect that the Assessing Officer may be directed to compute disallowance under Rule 8D(2)(iii) by considering only those investments which have yielded exempt income during the year. In this context, the assessee has furnished the following working to demonstrate the quantum of investment which yielded exempt income during the year: Particulars Details Balance as on 31/03/2009 Balance as on 31/03/2008 Average Total Value of Investment (A) 75,71,17,329 46,20,77,229 60,95,97,279 Investment yielding taxable/no income (B) 69,84,64,668 42,07,42,255 55,96,03,462 Investment yielding exempt income (C)=(B)-(A) 5,86,52,661 4,13,34, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owance under clauses (ii) of Rule 8D (2) with reference to the formula prescribed. Numerical B in clause (ii) refers to average value of the investment, income from which does not form part or shall not form part of the total income. The Assessing Officer for numerical B in clause (ii) had taken the total value of the investment and not the investment that had yielded exempt income. The Delhi High Court in ITA No. 615/2014, ACB India Ltd. vs. Asstt. Commissioner of Income Tax decided on 24th March, 2015 has held that only average value of the entire investment that does not form part of the total income is the factor which could be covered by the numerical B for computing disallowance under clause (ii) of Rule 8D(2) of the Rules." 9. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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