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| The Tax Publishers2021 TaxPub(DT) 0159 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A Rule 8D(2)(iii)
While computing disallowance under rule 8D(2)(iii), only those investments were required to be taken into consideration which yielded exempt income during the year.
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Disallowance under section 14A - Expenditure against exempt income - Invocation of rule 8D(2)(iii) - AO considered non-dividend bearing investments also for computing average value of investments
Assessee earned tax free dividend income on certain investments. AO while computing disallowance under section 14A read with rule 8D(2)(iii), also considered non-dividend bearing investments for arriving at average value of investments. Held: While computing disallowance under rule 8D(2)(iii), only those investments were required to be taken into consideration which yielded exempt income during the year. AO was directed accordingly.
Followed:Asstt. CIT & Anr. v. Vireet Investments (P) Ltd. (2017) 188 TTJ 1 (Del-Trib)(SB0 : 2017 TaxPub(DT0 1760 (Del-Trib).
REFERRED :
FAVOUR : Partly in assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 115JB Section 14A
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