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TMI Blog2023 (10) TMI 1361X X X X Extracts X X X X X X X X Extracts X X X X ..... t - Delhi Special Bench of ITAT in VIREET INVESTMENT (P.) LTD. [ 2017 (6) TMI 1124 - ITAT DELHI] has held that the disallowance computed u/s 14A of the Act cannot be imported into sec. 115JB of the Act. Thus, we notice that both the decisions rendered by Ld CIT(A) is backed by judicial orders of higher forums. The revenue did not show any contrary decision before us. Accordingly, we uphold the order passed by Ld CIT(A) on both these issues. Contention of the assessee that the average value of investments to be computed for the purpose of Rule 8D should be computed by considering only those investments, which have yielded dividend income - The above said contention finds support from the decision of Vireet Investments P Ltd [ 2017 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of development, construction and operation of power generation projects. During the year under consideration, the assessee received exempt income of Rs.4,87,59,468/- from units of mutual fund. The assessee computed disallowance u/s 14A at Rs.48,23,659/-. The AO took the view that the disallowance should be computed as per Rule 8D and accordingly computed the disallowance at Rs.152.67 crores. Subsequently, the said disallowance was reduced to Rs.135.70 crores in a rectification order passed u/s 154 of the Act. The AO adopted the figure of above said disallowance for computing book profit u/s 115JB of the Act also. 4. Before Ld CIT(A), the assessee took various contentions, which, inter alia, included a contention that the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns P Ltd (supra) in holding that the disallowance u/s 14A should not exceed exempt income. With regard to the addition to be made under clause (f) of Explanation given under sec. 115JB of the Act for computing book profit, the Delhi Special Bench of ITAT has held that the disallowance computed u/s 14A of the Act cannot be imported into sec. 115JB of the Act. Thus, we notice that both the decisions rendered by Ld CIT(A) is backed by judicial orders of higher forums. The revenue did not show any contrary decision before us. Accordingly, we uphold the order passed by Ld CIT(A) on both these issues. 8. In the cross objection, it is the contention of the assessee that the average value of investments to be computed for the purpose of Rule 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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