2023 (1) TMI 1487

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....R ORDER PER RAJESH KUMAR, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)"] dated 14.09.2022 for the AY 2017-18. 2. Issue raised in ground no. 1 is general in nature and does not need any adjudication. 3. Issue raised in ground no. 2 is against the order of Ld. C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... to earning of exempt income. The AO held that loss u/s 94(7) of the Act and disallowance u/s 14A of the Act are two distinct issues. Accordingly the AO computed disallowance of Rs. 19,93,513/- by taking 1% of the opening and closing balance in March, 2017 as stated in para 4.8 of the assessment order and added the same to the income of the assessee. The AO has also added the same in the calculati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the month and end of the month so far as the investments in mutual funds are concerned. The formula/mechanism as provided for quantification of expenses to be disallowed u/s 14A of the Act read with Rule 8D(2)(iii) fails and thus we find merit in the contentions of the assessee that since the mechanism provided under the Act itself fails on the issue of average investments becoming zero therefore....