TaxTMI 
TaxTMI 
2021 (3) TMI 764
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....ed against the order passed by the CIT(A)-6, Pune on 17-10-2017 in relation to the assessment year 2013-14. 2. The only issue raised in the memorandum of appeal is against the confirmation of disallowance u/s. 14A of the Income-tax Act, 1961 (hereinafter called 'the Act') read with Rule 8D of the Income-tax Rules, 1962. 3. Briefly stated, the facts of the case are that during the year th....
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.... percent of the average investments under rule 8D(2)(iii). No relief was allowed in the first appeal, against which the assessee has come up before the Tribunal. 4. We have heard both the sides through Virtual Court and gone through the relevant material on record. The issue instantly before us is against the second component of the disallowance made by the AO, namely, half percent of the average....
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....ing exempt income during the year should be considered for computing average value of investments. The Hon'ble Delhi High Court in ACB India Ltd. vs. CIT (2015) 374 ITR 108 (Del) has held that the average value of investments, for the purposes of Rule 8D(2)(iii), should be confined to those securities in respect of which exempt income is earned and not the total investments. Similar view has b....
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....under consideration. 6. The Hon'ble Supreme Court in National Thermal Power Company Ltd. Vs. CIT (1998) 229 ITR 383 (SC) has observed that "the purpose of the assessment proceedings before the taxing authorities is to assess correctly the tax liability of an assessee in accordance with law. If, for example, as a result of a judicial decision given while the appeal is pending before the Tribun....