Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 222 - AT - Income TaxDisallowance of provision for gratuity and other benefits since they are contingent in nature while computing book profit u/s 115JB - Held that:- The Tribunal for assessment year 2002-03 order [2010 (10) TMI 1022 - ITAT DELHI] has considered an identical issue and had decided the matter in favour of the assessee wherein AO is directed to compute the book profit without making any addition for aforesaid provisions. - Decided in favour of assessee. Depreciation on land amortized while calculating book profits under section 115JB - Held that:- Amortization of lease hold land has been made as per accounting standard 10 of ICAI and amortization of land unclassified as per Accounting Standard 6 of ICAI and in view of CAG, which has been done to meet the requirement of companies Act and amortization of land is permitted u/s 115JB. The identical issue was also involved in the case of appellant for A.Y.2008-09 and as per the detailed discussion, this issue has been decided in favour of the appellant. Since the issue is already covered by the decision for earlier year, the addition made by the AO for the purpose of computing book profit u/s 115JB of the Act is directed to be deleted - Decided in favour of assessee. Disallowance under section 14A - CIT(A) deleted the disallowance - Held that:- We find that the assessee has earned exempt income to the tune of ₹ 51,75,50,800/- and has suo motu disallowed ₹ 13.78 crores under section 14A of the Act. We find that the AO has invoked Rule 8D without spelling out the reason for not being satisfied with the computation made by the assessee in respect to expenditure incurred for earning the exempt income. Without recording the objective satisfaction as required under sub-section (2) to section 14A that he is not satisfied with the correctness of the claim of the assessee in respect of expenditure in respect to exempt income, the AO cannot invoke Rule 8D to compute the disallowance under the said Rule. See CIT vs. Taikisha Engineering India Limited [2014 (12) TMI 482 - DELHI HIGH COURT ] - Decided in favour of assessee.
|