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TMI Blog2023 (7) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... capital, reserves and surplus. That being the factual position emerging on record, we hold that no disallowance of interest expenditure can be made under rule 8D(2)(ii). Hence, we direct the Assessing Officer to delete the disallowance made under Rule 8D(2)(ii) for both the assessment years under appeal. As regards the disallowance made under Rule 8D(2)(iii), respectfully following the ratio laid down in Vireet Investments (P) Ltd. [ 2017 (6) TMI 1124 - ITAT DELHI] we direct the Assessing Officer to consider only those investments which have yielded exempt income during the relevant assessment years for computing average value of investments. Grounds are partly allowed. - SHRI SAKTIJIT DEY, VICE-PRESIDENT AND SHRI GIRISH AGRAWAL, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any expenditure attributable to earning of exempt income in terms of section 14A of the Act read with Rule 8D. Having found that, he proceeded to compute disallowance under section 14A of the Act read with Rule 8D in the years under consideration and disallowed expenditure of Rs.3,21,91,000/- in assessment year 2011-12 and Rs.3,85,60,000/- in assessment year 2012-13. The assessee contested the above said disallowances before learned first appellate authority. While deciding the issue, learned first appellate authority restricted the disallowance to the quantum of exempt incomes earned in the relevant assessment years under dispute. Still aggrieved, the assessee is before us. 5. We have heard rival submissions and perused materials on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt years under appeal. 8. As regards the disallowance made under Rule 8D(2)(iii), respectfully following the ratio laid down by ITAT Delhi, Special Bench in case of ACIT vs. Vireet Investments (P) Ltd. (2017) 58 ITR (T) 313 (Delhi-ITAT-SB), we direct the Assessing Officer to consider only those investments which have yielded exempt income during the relevant assessment years for computing average value of investments. Grounds are partly allowed. 9. As regards grounds Nos. 2 3 of ITA No. 142/Del/2021, on instructions, learned counsel appearing for the assessee did not press them. Accordingly, grounds Nos. 2 3 of ITA No. 142/Del/2021 are dismissed as not pressed. 10. The other grounds raised by the assessee, being of general natu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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