2019 (6) TMI 792

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.... Rama Karthikeyan, Sr. D.R. ORDER PER PRADIP KUMAR KEDIA - AM: The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-6, Mumbai, ('CIT(A)' in short), dated 15.06.2017 arising in the assessment order dated 17.02.2016 passed by the Assessing Officer (AO) under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning AY 2....

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....1,118/-. The cause for downward revision in quantum of disallowance is that the assessee while filing the return had wrongly taken all investments in equity shares for the purposes of computation of disallowance regardless of whether the equity has actually yielded tax free income or not. However, the law in this regard has been interpreted by judicial decisions rendered subsequently whereby it wa....

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....(Del) wherein it has been held by the Special Bench that investments not yielding any income during the year has to be excluded while calculating the average investments and the disallowance has been to be worked out only thereafter on the basis of investment actually yielding tax free income. We therefore find substantial merit in the case of the assessee. We also notice that identical issue has ....

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....ecial Bench in Vireet Investment (supra) and in view of findings given by the co-ordinate bench in assessee's own case concerning AY 2012-13 in ITA No. 3623/Mum/2017, we find substantial merit in the plea of the assessee to restrict the adjustments to the extent of Rs. 34,21,118/- in respect of disallowance relatable to exempt income notwithstanding higher adjustments made by the assessee. The AO ....