Section 14A / Rule 8D not applies to short-term investments

Some of the investments made by the assessee are short term. Since assessee is paying capital gains tax on short term investments, the provisions of Rule 8D will not apply on them. The Assessing Officer is directed to re¬compute dis-allowance u/s. 14A r.w.r. 8D after excluding short term investments. This ground of appeal of the assessee is partly allowed in the aforesaid terms.  INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH : CHENNAI [BEFORE Dr. O.K.NARAYANAN, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER] I.T.A. No. 1774/Mds/2012 – Assessment year : 2008-09 Sundaram Asset Mana...