ACIT v. Vireet Investment Pvt. Ltd.

165 ITD 27Income Tax Appellate Tribunal2017#55 most cited

What is ACIT v. Vireet Investment Pvt. Ltd. authority for?

No disallowance under section 14A can be made while computing book profits under section 115JB unless the expenditure is debited to the profit and loss account and satisfies clause (f) of Explanation 1 to section 115JB(2).

882

judgments rely on this decision, according to BharatTax’s citation analysis of 370,744 Indian tax judgments — from 2017 to 2026.

Also referred to as

ACIT v. Vireet Investment Pvt. Ltd. · Section 14A disallowance · Section 115JB book profits · MAT computation · expenditure for exempt income · Explanation 1 to Section 115JB(2)(f) · debit to profit and loss account · Vireet Investment Special Bench

Also reported as

58 ITR (Trib) 313

Sections most often in play

Section 14ASection 115JBSection 143(3)Section 1961Section 8DSection 37(1)Section 250Section 143(2)

Issues it is cited on

section 115jb(2)section 14a(2)strategic investmentbook profitscorporate guaranteesection 115jdisallowance under section 14adisallowance of interest expendituresection 115jbdisallowance u/s 14asection 92bsection 14a

Judgments citing ACIT v. Vireet Investment Pvt. Ltd.

Applewoods Estate Pvt. Ltd., Ahmedabad vs. The DCIT, Circle-1(1)(1), Ahmedabad

In the result, appeal of the assessee in ITA No

ITA 198/AHD/2018[2012-13]Status: DisposedITAT Ahmedabad17 Jul 2019AY 2012-13

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediaआयकर अपील सं./I.T.A. No. 198/Ahd/2018 ("नधा"रण वष" / Assessment Year : 2012-13)

For Respondent: Smt. Aparna Agrawal, CIT
Section 14ASection 234A

…regard to the investments which has ITA Nos. 198 & 600/Ahd/18 [Applewood Estate Pvt. Ltd.] A.Y.2012-13 - 41 - actually yielded exempt income instead of gross investments in consonance with the decision of the special bench in ACIT vs. Vireet Investments Ltd. 165 ITD 27 (Delhi-Trib.) (SB) as relied upon on behalf of the assessee. The issue is therefore remitted back to the file of the AO for re-computation of disallowance under Rule 8D(2)(iii) of the Rules with reference to average investments which have actually yielded exempt income to the assessee. 28. Ground No.6 of the assessee’s appeal is accordingly allow…

Deputy Commissioner of Income Tax Circle-2(1)(2), Bangalore vs. M/S Dhruvi Securities Private Limited, Bangalore

In the result, the assessee’s appeals and Revenue appeal are allowed for statistical purposes

ITA 537/BANG/2019[2014-15]Status: DisposedITAT Bangalore15 Jul 2019AY 2014-15

Bench: Shri A.K. Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Sunil Jain, CAFor Respondent: Dr.P.V.Pradeep Kumar, Addl.CIT(DR)
Section 143(2)Section 143(3)Section 14A

…the amount of exempt income. On the second limb of argument that only investments which yielded exempt income should alone be considered, in the light of the decision of the Special Bench of Tribunal in the case of ACIT vs. Vireet investment Pvt. Ltd. & anr (165 ITD 27) (SB), the contention of the assessee is accepted. Accordingly, we restore the issue back to the file of the AO for disallowance u/s 14A by restricting the amount of disallowance to the lower of exempt income or amount arrived at by prescribed formula under rule 8D clause (iii) by taking into only those investments which yielded exempt income.” B…

Dhruvi Securities Private Limited, Bangalore vs. Assistant Commissioner of Income Tax, Circle 2(1)(2), Bangalore

In the result, the assessee’s appeals and Revenue appeal are allowed for statistical purposes

ITA 318/BANG/2019[2015-16]Status: DisposedITAT Bangalore15 Jul 2019AY 2015-16

Bench: Shri A.K. Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Sunil Jain, CAFor Respondent: Dr.P.V.Pradeep Kumar, Addl.CIT(DR)
Section 143(2)Section 143(3)Section 14A

…the amount of exempt income. On the second limb of argument that only investments which yielded exempt income should alone be considered, in the light of the decision of the Special Bench of Tribunal in the case of ACIT vs. Vireet investment Pvt. Ltd. & anr (165 ITD 27) (SB), the contention of the assessee is accepted. Accordingly, we restore the issue back to the file of the AO for disallowance u/s 14A by restricting the amount of disallowance to the lower of exempt income or amount arrived at by prescribed formula under rule 8D clause (iii) by taking into only those investments which yielded exempt income.” B…

Dhruvi Securities Private Limited, Bangalore vs. Assistant Commissioner of Income Tax Circle-2(1)(2), Bangalore

In the result, the assessee’s appeals and Revenue appeal are allowed for statistical purposes

ITA 317/BANG/2019[2014-15]Status: DisposedITAT Bangalore15 Jul 2019AY 2014-15

Bench: Shri A.K. Garodia & Shri Pavan Kumar Gadale

For Appellant: Shri Sunil Jain, CAFor Respondent: Dr.P.V.Pradeep Kumar, Addl.CIT(DR)
Section 143(2)Section 143(3)Section 14A

…the amount of exempt income. On the second limb of argument that only investments which yielded exempt income should alone be considered, in the light of the decision of the Special Bench of Tribunal in the case of ACIT vs. Vireet investment Pvt. Ltd. & anr (165 ITD 27) (SB), the contention of the assessee is accepted. Accordingly, we restore the issue back to the file of the AO for disallowance u/s 14A by restricting the amount of disallowance to the lower of exempt income or amount arrived at by prescribed formula under rule 8D clause (iii) by taking into only those investments which yielded exempt income.” B…

Aditya Medisales Limited, Vadodara vs. The Deputy Commissioner of Income Tax, Circle-1(1)(1), Vadodara

In the result, appeal filed by Revenue is dismissed

ITA 1989/AHD/2017[2013-14]Status: DisposedITAT Ahmedabad09 Jul 2019AY 2013-14

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediaआयकर अपील सं./I.T.A. No. 1989/Ahd/2017 ("नधा"रण वष" / Assessment Year : 2013-14)

For Respondent: Smt. Aparna Agrawal
Section 14ASection 234DSection 37(1)

…hearing, the learned Senior Counsel for the assessee sought limited direction for computation of disallowance of administrative expenses only with reference to investments which have actually yielded exempt income in tune with ACIT vs. Vireet Investments Ltd. 165 ITD 27 (SB). 8.2 Identical issue has been dealt with by the ITAT in 3049/Ahd/2014 & Ors. concerning AY 2008-09 to 2011-12. The relevant operative para concerning AY 2010-11 in para no. 18.4 of the order dealing with the issue reads as under: “18.4 Turning to the cross grievance of the assessee disallowance sustained under s.14A of the Act, we observe t…

The Addl.CIT, Range-1, Baroda vs. Gujarat Fluorochemeicals Ltd, Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 548/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e on account of disallowance under section 14A cannot be made in the book profit under section 115JB of the Act. The ld.counsel for the assessee at the very outset submitted that Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (SB) has held that no adjustment on account of 14A disallowance can be made in the book profit for the purpose of section 115JB. It is also pertinent to note that we have dealt with this issue in the Asstt.Year 2012-13 and 2013-14. Following the decision of the Special Bench, we have held that no such amount can be included in the book profit. The…

Gujarat Flurochemicals Limited, Baroda vs. The Dy.CIT, Circle-1(1), Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 117/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2011-12

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e on account of disallowance under section 14A cannot be made in the book profit under section 115JB of the Act. The ld.counsel for the assessee at the very outset submitted that Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (SB) has held that no adjustment on account of 14A disallowance can be made in the book profit for the purpose of section 115JB. It is also pertinent to note that we have dealt with this issue in the Asstt.Year 2012-13 and 2013-14. Following the decision of the Special Bench, we have held that no such amount can be included in the book profit. The…

Gujarat Flurochemicals Limited, Baroda vs. The Addl. CIT, Range-1, Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 116/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e on account of disallowance under section 14A cannot be made in the book profit under section 115JB of the Act. The ld.counsel for the assessee at the very outset submitted that Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (SB) has held that no adjustment on account of 14A disallowance can be made in the book profit for the purpose of section 115JB. It is also pertinent to note that we have dealt with this issue in the Asstt.Year 2012-13 and 2013-14. Following the decision of the Special Bench, we have held that no such amount can be included in the book profit. The…

Tha Addl. CIT, Range-1, Baroda vs. M/S. Gujarat Flurochemicals Limited., Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 106/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e on account of disallowance under section 14A cannot be made in the book profit under section 115JB of the Act. The ld.counsel for the assessee at the very outset submitted that Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (SB) has held that no adjustment on account of 14A disallowance can be made in the book profit for the purpose of section 115JB. It is also pertinent to note that we have dealt with this issue in the Asstt.Year 2012-13 and 2013-14. Following the decision of the Special Bench, we have held that no such amount can be included in the book profit. The…

Gujarat Fluorochemeicals Ltd, Baroda vs. The Dy.CIT., Circle-1(1)(1), Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 135/AHD/2015[2008-09]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2008-09

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e on account of disallowance under section 14A cannot be made in the book profit under section 115JB of the Act. The ld.counsel for the assessee at the very outset submitted that Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (SB) has held that no adjustment on account of 14A disallowance can be made in the book profit for the purpose of section 115JB. It is also pertinent to note that we have dealt with this issue in the Asstt.Year 2012-13 and 2013-14. Following the decision of the Special Bench, we have held that no such amount can be included in the book profit. The…

The DCIT, Circle-1(1), Baroda vs. Gujarat Flurochemicals Ltd., Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 2546/AHD/2012[2009-10]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2009-10

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e on account of disallowance under section 14A cannot be made in the book profit under section 115JB of the Act. The ld.counsel for the assessee at the very outset submitted that Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (SB) has held that no adjustment on account of 14A disallowance can be made in the book profit for the purpose of section 115JB. It is also pertinent to note that we have dealt with this issue in the Asstt.Year 2012-13 and 2013-14. Following the decision of the Special Bench, we have held that no such amount can be included in the book profit. The…

Gujarat Flurochemicals Ltd., Baroda vs. The Dy.CIT., Circle-1(1), Baroda

Appeals of the Revenue are dismissed, whereas appeals of the assessee are partly allowed for statistical purpose

ITA 2365/AHD/2012[2009-10]Status: DisposedITAT Ahmedabad28 Jun 2019AY 2009-10

Bench: Shri Rajpal Yadav & Shri Pradip Kumar Kediasr. No.

For Appellant: Shri S.N. Soparkar, and Shri Parin Shah, ARFor Respondent: Shri Subhas Bains, CIT-DR and Shri Vinod Tanwani, Sr.DR

…e on account of disallowance under section 14A cannot be made in the book profit under section 115JB of the Act. The ld.counsel for the assessee at the very outset submitted that Special Bench of the Tribunal in the case of ACIT Vs. Vireet Investments P.Ltd., 165 ITD 27 (SB) has held that no adjustment on account of 14A disallowance can be made in the book profit for the purpose of section 115JB. It is also pertinent to note that we have dealt with this issue in the Asstt.Year 2012-13 and 2013-14. Following the decision of the Special Bench, we have held that no such amount can be included in the book profit. The…

Frigorifico Allana Private Limited, Mumbai vs. Income Tax Officer 1(1)(4), Mumbai

ITA 925/MUM/2018[2013-14]Status: DisposedITAT Mumbai27 Jun 2019AY 2013-14

Bench: Hon’Ble Shri Sandeep Gosain, Jm & Hon’Ble Shri N. K. Pradhan, Am

For Appellant: Shri Apurva R. Shah, ARFor Respondent: Shri Rajeev Gubgotra, DR
Section 143(3)Section 14ASection 2(24)(x)

…allowance u/s 14A of the Act, those investments that have not yielded any income during the year are to be excluded. 9. After hearing both the parties at length, we find that the Spl. Bench of ITAT in the case of ACIT vrs. Vireet Investments Pvt. Ltd. (2017) 165 ITD 27 taxman.com 415 had held that for computing disallowance only those investments are to be considered for computing average value of investment, which 5 I.T.A. No. 925 & 1860/Mum/2018 M/s Frigorifico Allana Pvt. Ltd. yielded exempt income during the year. Thus in these circumstances, we restore this ground to the file AO for deciding this ground afr…

DCIT 5(2)(1), Mumbai vs. K. Girdharilal International Ltd., Mumbai

In the result, appeal of the revenue is partly allowed for statistical purposes

ITA 4039/MUM/2018[2014-15]Status: DisposedITAT Mumbai26 Jun 2019AY 2014-15

Bench: : Shri M. Balaganesh, Am & Shri Amarjit Singh, Jm आमकय अऩीर सिं./Ita No.4039/Mum/2018 (नििाारण वषा / Assessment Year :2014-15) Dy. Commissioner Of Income Vs. M/S.K.Girdharlal International Tax-5(2)(1), Pvt. Ltd., Room No.571, 5Th Floor 1011, Prasad Chambers, Aayakar Bhavan Opera House, M.K.Road, Mumbai -400020 Mumbai – 400 004 स्थामी रेखा सिं./ जीआइआय सिं./ Pan/Gir No. : Aacck6101F (अऩीराथी /Appellant) (प्रत्मथी / Respondent) ..

Section 115JSection 143(3)Section 14A

…e ld. AO has disallowed the sum of Rs.1,15,08,087/- u/s.14A of the Act r.w.r. 8D of the Rules while computing book profits u/s.115JB of the Act. We find that the Special Bench of Delhi Tribunal in the case of Vireet Investments Pvt. Ltd., vs. ACIT reported in 165 ITD 27 had held that the computation provisions provided in rule 8D of the rules cannot be imported in clause ‘f’ of explanation to Section 115JB(2) of the Act and that the disallowance in terms of Clause-‘f’ thereon had to be made based on actual amounts debited to the profit and loss account. This fact requires to be verified by the ld. AO vis-à-vis th…

Entertainment Network (India) Ltd, Mumbai vs. Asst CIT RG 11(1), Mumbai

In the result, the appeals of the assessee in ITA No

ITA 852/MUM/2016[2010-11]Status: DisposedITAT Mumbai26 Jun 2019AY 2010-11

Bench: Shri Sandeep Gosain & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.852/Mum/2016 (नििाारण वर्ा / Assessment Year: 2010-11) बिाम/ Entertainment Network Acit 16(1), Room No. 439, 4T H Floor, Aayakar Bhavan, (India) Ltd., M.K Road, 4T H Floor, A Wing, V. Mumbai- 400020 Matulya Centre, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaace7796G आयकर अपीऱ सं./I.T.A. No.812/Mum/2016 (नििाारण वर्ा / Assessment Year: 2010-11) बिाम/ Acit 16(1), Room No. 439, Entertainment Network 4T H Floor, Aayakar Bhavan, (India) Ltd., M.K Road, Mumbai 400020 4T H Floor, A Wing, V. Matulya Centre, Senapati Bapat Marg, Lower Parel(West), Mumbai-400013 स्थायी ऱेखा सं./ Pan : Aaace7796G (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Respondent: Shri. R. Manjunatha Swamy &
Section 143(3)Section 14A

…are of the view that this issue is required to be restored to the file of AO to be decided afresh in accordance with ratio of law laid down by Hon‟ble Special Bench of Delhi Tribunal in the case of ACIT v. Vireet Investment Private Limited reported in (2017) 165 ITD 27(Delhi-trib.)( SB). This ground of appeal filed by the assessee is allowed for statistical purposes. We order accordingly. 20. The assessee has also raised an issue vide ground number 4 in memo of appeal filed with tribunal as to not allowing depreciation of Rs. 15,720/- on software expenses which were capitalised in AY 2007-08. Prayers are made by…

ACIT 16(1), Mumbai vs. Entertainment Network (India) Ltd, Mumbai

In the result, the appeals of the assessee in ITA No

ITA 812/MUM/2016[2010-11]Status: DisposedITAT Mumbai26 Jun 2019AY 2010-11

Bench: Shri Sandeep Gosain & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.852/Mum/2016 (नििाारण वर्ा / Assessment Year: 2010-11) बिाम/ Entertainment Network Acit 16(1), Room No. 439, 4T H Floor, Aayakar Bhavan, (India) Ltd., M.K Road, 4T H Floor, A Wing, V. Mumbai- 400020 Matulya Centre, Senapati Bapat Marg, Lower Parel (West), Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaace7796G आयकर अपीऱ सं./I.T.A. No.812/Mum/2016 (नििाारण वर्ा / Assessment Year: 2010-11) बिाम/ Acit 16(1), Room No. 439, Entertainment Network 4T H Floor, Aayakar Bhavan, (India) Ltd., M.K Road, Mumbai 400020 4T H Floor, A Wing, V. Matulya Centre, Senapati Bapat Marg, Lower Parel(West), Mumbai-400013 स्थायी ऱेखा सं./ Pan : Aaace7796G (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Respondent: Shri. R. Manjunatha Swamy &
Section 143(3)Section 14A

…are of the view that this issue is required to be restored to the file of AO to be decided afresh in accordance with ratio of law laid down by Hon‟ble Special Bench of Delhi Tribunal in the case of ACIT v. Vireet Investment Private Limited reported in (2017) 165 ITD 27(Delhi-trib.)( SB). This ground of appeal filed by the assessee is allowed for statistical purposes. We order accordingly. 20. The assessee has also raised an issue vide ground number 4 in memo of appeal filed with tribunal as to not allowing depreciation of Rs. 15,720/- on software expenses which were capitalised in AY 2007-08. Prayers are made by…

The DCIT, Circle-4(1)(2), Ahmedabad vs. M/S. Torrent Pvt. Ltd., Ahmedabad

In the result, the appeal of the revenue is dismissed and appeal of the assessee is partly allowed

ITA 3427/AHD/2015[2012-13]Status: DisposedITAT Ahmedabad24 Jun 2019AY 2012-13
For Appellant: Shri Biren Shah, A.RFor Respondent: Shri Mudit Nagpal, Sr. D.R
Section 10(34)Section 115JSection 143(3)Section 14ASection 234BSection 234CSection 271(1)(c)

…ove cited decision of the Co-ordinate Bench of the ITAT and noticed that the issue was decided in favour of the assessee by the Co-ordinate Bench after following the decision of the Special Bench of the ITAT, Delhi in the case of Vineet Investment reported in 165 ITD 27. Relevant part of the decision of the Co-ordinate Bench is reproduced as under:- “8. Ld. CIT(A) has deleted the addition vide para 5.4 on pages 43 and 44 of his order. At the time of hearing, ld. A.R. pointed out that over and above decision relied upon by ld. CIT(A) the issue is now well settled by the Special Bench decision in the case of Vineet…

M/S. Khyati Realities Ltd., Ahmedabad vs. ACIT, Circle-2(1)(2), Ahmedabad

In the result, the appeal of the assessee is partly allowed

ITA 552/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad14 Jun 2019AY 2013-14
For Appellant: Shri Tushar Hemani, A.RFor Respondent: Shri M. Anand Kumar, Sr. D.R
Section 115JSection 143(2)Section 143(3)Section 14A

…issue. 8. Regarding second issue in appeal of adding back disallowance of Rs. 4,22,831/- u/s. 14A of the act to book profit calculated u/s. 115JB of the act. We consider that the Special Bench of ITAT Delhi in the case of CIT vs. Vineet Investment Pvt. Ltd. 165 ITD 27 (Delhi)(SB) has held that such disallowance made u/s. 14A of the act is not to be added in computing book profit u/s. 115JB of the act. Therefore, we do not find any merit in the action of the assessing officer of adding the disallowance made u/s. 14A to the book profit. Accordingly, the same is deleted and appeal of the assessee on this issue is…

Ewart Investments Ltd, Mumbai vs. DCIT 2(1)(2), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 5609/MUM/2017[2013-14]Status: DisposedITAT Mumbai14 Jun 2019AY 2013-14

Bench: Shri Pradip Kumar Kedia & Shri Sandeep Gosainआयकर अपील सं./I.T.A. No. 5609/Mum/2017 ("नधा"रण वष" / Assessment Year : 2013-14)

For Appellant: Amey Wagle, A.RsFor Respondent: Shri Abi Rama
Section 115JSection 14A

…e paper book. 4. We have considered the rival submissions on the issue and perused the orders of the authorities below. We straightway notice that identical issue has been adjudicated by Delhi Special Bench in the case of ACIT vs. Vireet Investment (P.) Ltd. 165 ITD 27 (Del) wherein ITA No. 5609/Mum/17 [Ewart Investment Ltd. Vs. DC IT] A.Y. 2013-14 - 3 - 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 yieldi…

M/S Tavant Technologies India Pvt Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-12(4), Bangalore

In the result, the assessee’s appeal is partly allowed for

ITA 967/BANG/2017[2009-10]Status: DisposedITAT Bangalore14 Jun 2019AY 2009-10

Bench: Shri B.R. Baskaran & Shri Pavan Kumar Gadalem/S.Tavant Technologies India Pvt. Ltd. Csrie-11, No.12, Guava Garden, 5Th Block, Koramangala, Bengaluru-560095. … Appellant Pan:Aabct3261 E

For Appellant: Shri V.K.Gurunathan, AdvocateFor Respondent: Shri Vimal Anand, Addl.CIT(DR)
Section 10ASection 115Section 139(1)Section 143(2)Section 143(3)Section 144CSection 14ASection 234BSection 43B

…nvestment. As rightly pointed out by the learned AR that the AO has considered the value of all investments as on Page 6 of 8 1/4/2008 and as on 31/3/2009 and calculated. In the Special Bench decision of Tribunal rendered in the case of Vireet Investments (165 ITD 27)(Del.), it has been held that where for the purpose of calculation of disallowance under rule 8D, only those investments which yielded exempt income have to be considered. Considering the above facts and circumstances, we restore this disputed issue to the file of the AO to recompute the disallowance considering the decision of the Special Ben…