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2018 (7) TMI 1849 - AT - Income TaxDisallowance u/s.14A - additions of average investments - Held that:- The perusal of Balance Sheet, prima-facie, reveal that the assessee’s year end current investments and non-current investments aggregate to ₹ 787.43 Crores which is approx. 76% of total assets i.e. ₹ 1037.69 Crores as reflected in the Balance Sheet. The same reveal that the assessee is pre-dominantly an investment company. At this juncture, we find that we stood benefitted by the recent judgment in Maxopp Investment Ltd. Vs. CIT [2018 (3) TMI 805 - SUPREME COURT OF INDIA] wherein it has categorically been held that the objective of holding the investments was immaterial and the disallowance was to be applied in all cases irrespective of the fact whether the same are held as stock-in-trade or as an investments. Therefore, keeping in view the recent judgment of Hon’ble Apex Court as cited above, we deem it fit to restore the matter back to the file of Ld. AO for re-adjudication in the light of statutory provisions as well as in the light of ratio of cited judgment of Hon’ble Supreme Court. The assessee, in turn, is directed to substantiate his claim with supporting evidences in this regard failing which Ld. AO shall be at liberty to decide the issue on the basis of material available on record. MAT - adjustment of disallowance u/s 14A in computation of book profit u/s 115JB is concerned, we find that the matter stood squarely in assessee’s favour rendered in ACIT Vs. Vireet Investment (P.) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] hold that adjustment of disallowance u/s 14A was not required to be made in Book Profits for the purpose of Section 115JB. The ground of assessee’s appeal stands allowed to that extent.
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