2022 (2) TMI 1528

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....hri V. Shiva Kumar For the Revenue : Shri Rohit Mujumdar ORDER Per Inturi Rama Rao, A.M. This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals) - 6, Hyderabad dated 24.05.2019 for the assessment year 2016-17. 2. The brief facts of the case are that the appellant is a private limited company incorporated under the provisions of ....

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..... While doing so, the Assessing Officer computed the amount of disallowance at 1% of the average value of the investments. 3. Being aggrieved by the above assessment order, an appeal was preferred before the learned CIT(A) contending that the amended rule 8D is applicable w.e.f. 02.06.2016 has only the prospective operation. No indirect expenditure was incurred to any exempt income, therefore, ....

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....age value of investments, any investment which yielded exempt income alone should be considered. 6. On the other hand, learned Sr. D.R. placing reliance on the order of CIT(A) said the amended rules on 8D have a retrospective operation and can therefore be applied to the pending assessments. 7. We have heard the rival submissions and perused the material on record. The issue in the present a....

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....icable for A.Y. 2017-18 onwards. Furthermore, for the purpose of computing the average value of the investments, the investments which yielded exempt income alone has to be considered in the light of the law laid down by the Hon'ble Delhi High Court in the case of Joint Investments Pvt. Ltd. vs. CIT 374 ITR 694 (Delhi), the decisions of Hon'ble Madras High Court in the cases of ACB India Ltd. Vs. ....