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2016 (4) TMI 1207 - AT - Income TaxMAT computation - Assessee submitted that the net profit as per the P & L account was computed which is the profit before tax and for computing the income under section 115JB the A.O. ought to have taken the same as the book profit before making the adjustments thereto - whether AO erroneously computed the income under section 115JB by taking the figure of ₹ 4,72,06,235 before deduction of R & D expenditure - Held that:- We find that assessee’s contention is correct. In view of the same, we deem it fit and proper to remit the issue to the file of the A.O. to re-consider and re-compute the income of the assessee under section 115JB of the Act, after verifying the claim of the assessee. Disallowance under section 14A - Held that:- We find that section 14A clearly stipulates that the expenditure incurred for earning of any income which does not form part of the total income alone can be disallowed. In the case before us, when the assessee has not earned any exempt income, there can be Prathista Industries Ltd., Secunderabad. no disallowance under section 14A of the Act. The Hon’ble Delhi High Court in the case of Cheminvest Ltd., reported in (2015 (9) TMI 238 - DELHI HIGH COURT ) has held that section 14A will not apply where no exempt income is received or receivable during the relevant assessment year. In view of the same, assessee’s appeal on this ground is allowed.
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