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2018 (10) TMI 1965 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Necessity of recording satisfaction - As argued AO has not recorded any satisfaction with regard to the correctness of claim of assessee - HELD THAT:- AO has neither recorded dissatisfaction about the correctness of claim of assessee nor proved nexus of expenditure between other expenses and exempt income. Therefore, considering the decision of Hon’ble Apex Court in Godrej & Boyce Mfg. Co. Ltd. [2017 (5) TMI 403 - SUPREME COURT] and Maxopp Investment Ltd. [2018 (3) TMI 805 - SUPREME COURT], we do not find any justification in making disallowance of expenses which has no nexus with the exempt income. Hence, Ground of the appeal is allowed. MAT computation of book profit u/s 115JB for disallowance of section 14A - HELD THAT:- We have noted that the Assessing Officer while passing the assessment order increased the book profit under section 115JB of the Act by the disallowance of section 14A. CIT(A) confirmed the action of Assessing Officer despite referring the decision of Special Bench in ACIT vs. Vireet Investment Pvt. Ltd [2017 (6) TMI 1124 - ITAT DELHI]. Considering the fact that we have already deleted the disallowance under section 14A. Hence, the raising of profit under section 115JB would automatically become infructuous. Charging interest u/s 234C - Assessee submits that charging of interest under section 234C on the returned total income and not on assessed total income - HELD THAT:- The perusal of section 234C shows that levy of interest under section 234C is on the return income and not on the total assessed income, therefore, we direct the Assessing Officer to levy and compute interest on return income under section 234C of the Act. We direct accordingly. Thus, Ground of appeal is allowed.
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