2023 (9) TMI 108

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....Shri. Aseem Sharma, CIT(DR)(ITAT), Bengaluru. ORDER PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against CIT(A)'s order dated 21.03.2023 passed under section 250 of the Income Tax Act, 1961 (hereinafter called 'the Act'). The relevant Assessment Year is 2014-15. 2. The solitary issue raised is whether CIT(A) is justified in confirming the....

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....nce of Rs. 4,69,055/- under section 14A r.w.r. 8D of the Income Tax Rules, 1962 (hereinafter called 'the Rules') after adjusting voluntary disallowance of Rs. 1,30,000/- made by the assessee. The AO considered the average investment value under Rule 8D(2)(iii) of the Rules, to be Rs. 11,98,11,000/- instead of Rs. 2,60,00,000/-. 4. Aggrieved by the Assessment Order, assessee filed appeal before ....

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....onsidering the average investment value under Rule 8D(2)(iii) of the Rules to be at Rs. 11,98,11,000/- (being total investments) is against the dictum laid down by the judgment of the Hon'ble Delhi High Court in the case of ACB India Ltd., Vs. ACIT reported in 374 ITR 108. It was submitted that only dividend earning investments should be considered in arriving at the average investment value under....

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....ows: "8. The Assessing Officer, instead of adopting the average value of investment of which income is not part of the total income, i.e., the value of tax exempt investment, chose to factor in the total investment itself. Even though the Commissioner of Income-tax (Appeals) noticed the exact value of the investment which yielded taxable income he did not correct the error but chose to ap....