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2019 (12) TMI 770 - ITAT KOLKATADisallowance of written off depreciated investments - HELD THAT:- Because of the restrictions contained in section 44 read with Rule 5 of the First Schedule, there could not be any disallowance of the amount written off out of investments and, accordingly, the disallowance is deleted Disallowance of Amortisation of Premium paid on Purchase of Investments - HELD THAT:- As relying on assessee's own case [2019 (6) TMI 84 - ITAT KOLKATA] CIT(A) has not erred on the facts of the case and in law in holding that a sum being amortization of premium paid on purchase of investments is an allowable deduction while computing the income." Addition towards Reserve created for Unexpired risk u/s 115JB - HELD THAT:- As relying on assessee's own case [2019 (6) TMI 84 - ITAT KOLKATA] Reserve created for unexpired risk need not be added back for the purpose of computation of book profits u/s 115JB Disallowance u/s 14A while computing the book profit of the assessee company u/s 115JB - HELD THAT:- Rule 8D could be invoked only for making a disallowance u/s 14A while computing the income of the assessee under the normal provisions of the Act and not for computation of book profit u/s 115JB of the Act. It was further held that unless an item is debited in the profit and loss account, the same could not be the subject matter of addition to book profits under clause (f) of Explanation to section 115JB of the Act and it is only the actual expenditure incurred by the assessee in relation to the exempt income, which is debited to the profit and loss account, can be added. In the present case, the assessee company had already disallowed expenses incurred in relation to the exempt income suo moto and keeping in view the same, we do not find any infirmity in the impugned order of the Ld. CIT(A) deleting the further disallowance made by the A.O. u/s 14A by applying Rule 8D while computing the book profit of the assessee company u/s 115JB of the Act. Ground of the Revenue’s appeal is accordingly dismissed.
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