Where the income of the assessee has been assessed under different heads, the disallowance u/s 14 read with rule 8D was made by AO. Tribunal held that the average of only such investments have to be taken into account while undertaking calculations under rule 8D, which yielded the income not forming part of the total income. The matter is restored with AO to make fresh calculation under rule 8D. (AY. 2015-16, 2016-17)
Sankalp v. Dy.CIT (2020) 195 DTR 273 / 208 TTJ 399 (Cuttack) (Trib.)
S. 14A : Disallowance of expenditure-Exempt income-AO was required to work out the average of such investment, the income from which did not form part of the total income instead of total value of investment-Matter remanded. [R. 8D(2)(iii)]