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2016 (10) TMI 709 - AT - Income TaxDisallowance on account of expenditure u/s. 14A - Held that:- Own funds of the assessee are sufficiently in excess of both the borrowings and investments, borrowings are proved to be for a specific purpose and there is no possibility of investing them for generating the exempted income, investments that are generating the exempted income were made prior to the relevant previous years, and above all the legal requirement of the AO recording the reasons for resorting to Section 14A r/w 8D in this matter are conspicuously absent. Viewing from any angle, we are convinced that there is no justification for the authorities below to sustain the disallowance made u/s. 14A of the Act in AYs 2008-09 and 2009-10. - Decided in favour of assessee MAT Applicability u/s 115JB - Held that:- There is no dispute that the assessee is a Public Limited company engaged in the business of generation/distribution of power and energy and is governed by the provisions of Electricity Act, 2003. Under West Bengal Electricity Regulatory Commission (Terms and Conditions of Traffic) Regulations, 2007 issued pursuant to Electricity Act, 2003, Assessee is under an obligation to prepare its accounts as per the said regulations and not under Part II and III of Schedule VI of the Companies for computing Book Profit. As a matter of fact, a coordinate Bench of this Tribunal in the assessee’s own case for the AY 2007-08 [2016 (8) TMI 855 - ITAT KOLKATA] considered this issue in extenso and hold that the provisions of Section 115JB have no application to the assessee company. In the said case, this Tribunal, after going through the basic intention behind the introduction of Sec. 115JB of the Act, Department Circular No. 762 dated 18.02.1998, Memorandum explaining the provisions in the Finance Bill, 1996, under the caption “Rationalisation and Simplification”, hyden rules, decisions of various High Courts and Tribunal viz. Kerala State Electricity Board Vs. DCIT reported in (2010 (11) TMI 127 - Kerala High Court) and Maharashtra State Electricity Board Vs. JCIT reported in (2001 (8) TMI 310 - ITAT MUMBAI ) decided that the provisions of section 115JB of the Act are not applicable to the assessee company. - Decided in favour of assessee
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