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2014 (8) TMI 59 - AT - Income TaxDisallowance u/s 14A r.w. Rule 8D - Inclusion of amount in adjusted book profit u/s 115JB – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that relying upon Godrej & Boyce Mfg. Co. Ltd. Vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] and the provisions of rule 8D, has remanded the issue to the file of the AO for re-examination - it is necessary for the assessee to point out how each item of expense debited to its profit and loss account is wholly incurred for the purpose of earning income which is taxable – thus, the matter is remitted back to the AO for re-examination. The direction is made that the addition of disallowance made u/s 14A cannot be made while computing book profit u/s 115JB of the Act - the AO has to record a categorical finding as to how he was not satisfied with the claim of the assessee regarding the expenditure incurred for earning the exempt income - The disallowance made u/s 14A cannot be included in the book profit for the purpose of section 115JB – Decided in favour of Assessee.
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