INTEGRATED DATABASES INDIA. LTD. Vs. DCIT

JUDGEMENT

(1.) THIS appeal, at the instance of the assessee, is directed against the order of the CIT(A) dated 10.06.2013. The relevant assessment year is 2009 -10.

(2.) THE effective grounds argued in the course of the hearing reads as follows: - -

(3.) THE assessee being aggrieved filed an appeal before the First Appellate Authority. Before CIT(A), it was submitted that the AO is not justified in including investment, which have not yield income, for the purpose of disallowance under Rule 8D(2)(iii). The CIT(A) rejected the contentions raised by the assessee and affirmed the order of the assessment. However, CIT(A) directed the AO to exclude a sum of Rs. 2.6 crores being the mutual fund, on which, the assessee had paid capital gains tax under the head long term/short term capital gains for the AYs 2008 -09 and 2009 -10. For re -computation of disallowance u/s. 14A, the appeal of the assessee was restored to the AO (for the exclusion of 2.6 crores from the "average investment").