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2023 (8) TMI 1438 - AT - Income TaxAddition u/s 115JB for disallowance u/s 14A - addition in the book profit by adding the amount of disallowance made u/s. 14A while calculating the taxable profit u/s. 115JB - HELD THAT:- As in the book profit by adding the amount of disallowance u/s 14A of the Act while calculating taxable profit u/s 115JB of the Act, whereupon, the Co-ordinate Bench in [2022 (12) TMI 1495 - ITAT AHMEDABAD] for A.Y. 2015-16 has been pleased to hold that disallowance made u/s 14A of the Act is not required to be added back to the book profit and relief accordingly was granted. However, the Ld. CIT(A) issued direction to the AO to include the dividend income while computing book profit. We, therefore, do not find any reason to deviate from the stand taken by the Coordinate Bench which has upheld such direction passed by the CIT(A). We, therefore, respectfully relying upon the same, do not find any reason to interfere with such order passed by the CIT(A). This ground of appeal appears to have been no merit and thus dismissed. Nature of expenses - disallowance being guarantee fees paid to Government of Gujarat - HELD THAT:- We find that the Ld. CIT(A) following the order passed by his predecessor for A.Ys. 2008-09 [2016 (6) TMI 1391 - ITAT AHMEDABAD] wherein guarantee fees was directed to be allowed as revenue expenditure subject to verification of the certificate filed during the appellate proceedings that the loans on which guarantee fees was paid were duly utilized for construction of power plants at that time and there was no capital work-in-progress in respect of such loans during F.Y. 2014-15. Thus, we do not find any reason to interfere with the observations passed by the Ld. CIT(A). Hence, we uphold the same. This ground of appeal preferred by the Revenue is found to be devoid of any and thus, dismissed. Addition being 15% of capital grants - HELD THAT:- As perused the order passed by the Co-ordinate Bench in [2023 (7) TMI 1378 - ITAT AHMEDABAD] in assessee’s own case, wherein issue has been discussed and decided in favour of the assessee upon deleting the addition made by the Ld. AO being addition of 15% of capital grant. Correct head of income - Treatment of interest income and miscellaneous income - HELD THAT:- As relying on [2023 (7) TMI 1378 - ITAT AHMEDABAD] - Tribunal’s decision in assessee’s own case, we hereby held that the interest income and miscellaneous income earned by the assessee were directly related to the business of the assessee and assessable as “business income” only and not as “income from other sources”. Disallowance u/s. 14A for the purpose of computation of book profit u/s. 115JB of the Act is hereby deleted. Disallowance of prior period expenditure - whether such expenditure crystallized during the year? - CIT(A) deleted addition - HELD THAT:- It appears that the appellant had accounted for net prior period expenses of the impugned amount which is visible from the copy of computation of income placed at Annexure-III before the CIT(A). Considering which, the disallowance found to be not sustainable, which according to us, is just and proper so as to warrant interference. Thus, this ground of appeal is dismissed.
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