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2019 (11) TMI 1717 - AT - Income TaxDeduction u/s 80IA - assessee made no such claim in its return u/s 139(1) which was mandatory in view of the provisions of section 80A(5) read with section 80AC - scope of revised return was filed u/s 139(5) - CIT-A deleted the addition - HELD THAT:- In this case, the assessee has filed a return u/s 139(1) within due date specified date, but the claim for deduction u/s 80IA, in respect of second unit was not made, however a revised return was filed u/s 139(5) within due date specified under the Act and made additional claim for deduction, in respect of second unit. When original return was filed within due date specified u/s 139(1), then any revised return filed within the due date specified u/s 139(5) to rectify any mistakes or omissions or wrong statements made in the return already filed u/s 139(1), then the revised return takes, the nature of the original return filed within due date specified u/s 139(1) and consequently, the assessee fulfills the conditions prescribed u/s 80AC of the Act, in order to be eligible for deduction u/s 80IA of the I.T. Act, 1961. CIT(A) after considering relevant facts has rightly deleted additions made by the AO towards disallowances of deduction claimed u/s 80IA - No reasons to interfere in the order of the Ld. CIT(A) and hence, we are inclined to uphold the findings of the Ld. CIT(A) and reject ground taken by the revenue. Addition u/s 14A - disallowance of expenditure incurred in relation to exempt income - HELD THAT:- We find that the Ld. DR for the revenue did not dispute the fact that there is no exempt income earned for the year under consideration. When there is no exempt income, the question of disallowance of expenditure incurred in relation to said exempt income does not arise. This legal proposition is supported by the decision of Hon’ble Bombay High Court in the case of CIT vs M/s. Ballarpur Industries [2016 (10) TMI 1039 - BOMBAY HIGH COURT] where it was categorically held that provision of section 14A would not apply, in case, there is no exempt income was received or receivable during the relevant previous year - Decided in favour of assessee. Re-computation of book profit u/s 115JB in respect of disallowance of expenditure incurred in relation to exempt income u/s 14A - HELD THAT:- We find that the Ld. CIT(A) has correctly deleted adjustments made by the AO to book profit computed u/s 115JB in respect of 14A disallowances by following the decision of M/S. BENGAL FINANCE & INVESTMENTS PVT. LTD. [2015 (2) TMI 1263 - BOMBAY HIGH COURT] where it was held that amount disallowed u/s 14A of the Act, cannot be added to arrive at book profit for purpose of section 115JB - Also VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] where it was held that computation under clause (f) of Explanation (1) to section 115JB(2) is to be made without resorting to computation as contemplated u/s 14A r.w.s. Rule 8D. We find that the finding of facts recorded by the Ld. CIT(A), in light of above two decisions is in accordance with law and does not called for any interference - Revenue appeal dismissed.
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