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2019 (11) TMI 860 - AT - Income TaxLoss on account of mark to market - Business Expenditure - Assessee submitted that it had made provisions for loss following accepted accounting principles as per the Guidance Note on “Accounting for Equity Index & Equity Stock Futures and Options” issued by theICAI and claimed the loss as deductable business expenditure. HELD THAT:- As decided in case of M/s. Edel Commodities Limited v. DCIT [2018 (4) TMI 562 - ITAT MUMBAI], even though the loss has not finally crystallized if as per prudent and regular system of accounting, the loss has to be accounted for, the same should be allowed. Disallowance u/s 14A read with Rule 8D(2)(iii) - HELD THAT:- In the case of Nirma Credit & Capital (P) Ltd [2017 (9) TMI 485 - GUJARAT HIGH COURT] it is held that for the purpose of applying factors contained in clause (ii) of sub-rule (2) of rule 8D, prior to its amendment w.e.f 02.06.2016, amount of expenditure by way of interest would be interest paid by assessee on borrowings minus taxable interest earned during financial year. Addition made to Book Profit computed u/s 115JB on account of disallowance made u/s 14A - HELD THAT:- We have heard the rival submissions and perused the material available on record. In the case of Vireet Investment (P) Ltd [2017 (6) TMI 1124 - ITAT DELHI] it is held that computation under clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to computation as contemplated u/s.14A r.w. Rule 8D.
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