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2013 (5) TMI 117 - AT - Income TaxAddition of disallowance u/s 14A read with Rule 8D to the book profit computed u/s 115JB - MAT - Minimum alternate tax - Held that:- As decided in case of M/s.Essar Teleholdings Ltd. v. DCIT [2013 (5) TMI 116 - ITAT MUMBAI] relying on Goetze (India) Ltd. v. CIT [2009 (5) TMI 615 - ITAT DELHI] the amount disallowed u/s 14A cannot be added to the amount of book profit u/s 115JB. Unless a particular expenditure is debited to the profit and loss account relating to the earning of exempt income, the same cannot be imported into the computation of book profit as clause (f) of Explanation 1 to section 115JB which only refers to the amount debited to the profit and loss account. Prior period expenses - the same have been debited to the profit and loss account - Held that:- Starting point for computing book profit u/s 115JB is the amount of net profit as disclosed by Profit and loss account. Only the items enumerated in Explanation 1 to section 115JB are required to be increased for determining the book profit. There is no reference to increasing the amount of net profit by the prior period expenses in Explanation 1 to section 115JB. CIT(A) was justified in deleting the addition.
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