Consider Investments Yielding Exempt for Rule 8D Disallowance: ITAT Delhi

Airport Authority of India Vs DCIT (ITAT Delhi) ITAT Delhi remanded the issue back to file of AO to re-compute disallowance under rule 8D(2)(ii) of the Income Tax Act by taking those investment which give rise to exempt income @1% of average value of investment. Facts- The assessee in its return of income disclosed dividend income of Rs. 19,65,60,000/- and claimed as exempt. AO during the course of assessment proceedings asked the assessee to furnish details of expenditure debited to the profit and loss account in relation to exempt income and show caused as to why disallowance u/s 14A of the ...