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2014 (10) TMI 891 - ITAT DELHIAddition on account of alleged perks paid out of un-disclosed sources - Held that:- Having regard to the retraction and the fact that there is no other material found during the course of search or even gathered in the course of assessment proceedings to corroborate the initial statement of Shri Mahendru, we are inclined to uphold the order of the ld CIT(A) in deleting the addition - Decide against revenue Addition u/s 14A - Held that:- In the instant case, it is an admitted position that assessee had made investments of ₹ 53.73 crores at the close of the year. It is also not in dispute that there was dividend income from such investments which was claimed as exempt. Also assessee had made an adhoc disallowance u/s 14A of ₹ 2 lakhs in the instant year, in the return filed before the AO. The Assessment Year is 2008-09 and as such Rule 8D is applicable, thus once section 14A comes into operation, then disallowance as mandated u/s 14A read with Rule 8D comes into force. No specific challenge has been made against the computation made by the AO applying Rule 8D. Therefore we are inclined to affirm the order of the ld CIT(A) - Decide against assessee Disallowance u/s 14A while computing the income u/s 115JB - Held that:- As per the Explanation to section 115JB of the Act, book profit is defined to be the net profit shown in the Profit & Loss Account for the relevant previous years as increased/reduced by the amounts specified in the clauses mentioned thereunder. The disallowance worked in the hands of the assessee under the provisions of section 14A of the Act is not covered by the aforesaid clauses. See ACIT Vs. Spray Engineering devices [2012 (7) TMI 587 - ITAT CHANDIGARH]. We respectfully concur and therefore delete the Disallowance u/s 14A to the Book Profits, while computing the income u/s 115JB of the Act - Decide against revenue
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