Pro-rata formula u/r 8D(2)(ii) applies for disallowance u/s 14A, considering average assets throughout the year.

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....Validity of the disallowance u/s. 14A - The pro-rata formula of funding enshrined in Rule 8D(2)(ii) would thus apply on facts to the assets, both as at the beginning and the close of the relevant year and, thus, to the average assets, including investments, held during the year, signifying the appropriateness of the formula u/r. 8D(2)(ii) both on facts and in law. - AT....