Allowing the appeal of the assessee, the Court held that  The Central Board of Direct Taxes circular dated February 11, 2014 ([2014] 361 ITR (St.) 94) cannot override the express provisions of section 14A read with rule 8D. The circular does not refer to rule 8D(1) of the Rules at all but only refers to the word ”includible” occurring in the title to rule 8D as well as the title to section 14A. The circular concludes that it is not necessary that exempt income should necessarily be included in a particular year’s income for the disallowance to be attracted. Hence where dividends are earned in calculating the disallowance under section 14A only those investments are to be considered for computing the average value of investments which yielded exempt income during the relevant.(ITA No. 5944/ Delhi/ 2016 dt. 31-7 -2019)  (AY. 2013 -14)