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2018 (6) TMI 1770 - AT - Income TaxComputation of income for the purposes of allowing deduction u/s.36(1)(viia) - HELD THAT:- As decided in CANARA BANK VERSUS JOINT CIT, LTU, BANGALORE. [2016 (4) TMI 429 - ITAT BANGALORE] the amount of deduction is to be calculated with reference to income computed under the head 'profits and gains of business or profession'. The provisions governing the brought forward and set-off business loss are not part of the provisions governing the computation of profits under the head 'profits and gains of business' - the method of calculation adopted by the AO is in accordance with the provisions of the Act and the reasoning adopted by the CIT(A) is also in consonance with the clear provisions of the Act. Hence, we confirm the addition made by the AO. The grounds of appeal raised by the assessee on this issue are dismissed. Additions made while computing the book profit which are not covered by the Explanation 1 to section 115JB(2) - HELD THAT:- Admittedly, as per the decision of the CIT (A) the provisions of Section 115JB are not applicable to the assessee bank as the issue was decided in favour of the assessee by a decision of the coordinate bench in the assessee’s own case. As , the decision of the CIT (A) was based on the decision rendered in the assessee’s own case by the Tribunal in earlier years, therefore the assessee had preferred the appeal before us. If the decision is rendered by the superior court in the earlier appeal for AY 2007-08 [2015 (4) TMI 727 - ITAT BANGALORE], thereby reversing the decision of the Tribunal for AY 2007-08, in that eventuality in the opinion of the bench, this issue will be required to be decided by the CIT (A), as no decision was rendered by the CIT (A) or by the Tribunal. In our view, it is for the assessee to move an appropriate application for seeking a direction from the Tribunal for adjudication of these issues namely, ground nos.8 to 15, in case the decision is reversed by the superior court in earlier appeal and sought appropriate direction for adjudication of these grounds on merit by the CIT(A) . At this stage, we do not find any error in the decision recorded by the CIT (A). Therefore this ground of the assessee is decided in terms of the above said observation, against the assessee.
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