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2019 (8) TMI 104 - AT - Income TaxDisallowance u/s 14A - adjustment made while computing Book profits u/s115JB - no exempt income - HELD THAT:- Admittedly, there is no exempt income earned by assessee during years under consideration. Under such circumstances, the ratio that no disallowance can be computed under section 14 A read with Rule 8D, shall apply while computing Book profits u/s115JB. It is observed that this Tribunal in case of Windsor Gardens Private limited vs DCIT, applied same analogy for computing book profit under section 115 JB Explanation 1 Clause (f). Respectfully following same, we direct Ld. AO to delete the addition made on account of disallowance under section 14A while computing book profits. Admission of additional Ground - Issue not arising from impugned order - HELD THAT:- The Additional Ground raised by assessee is in respect of disallowance computed u/s 14A, as there is no exempt income earned during the year. It is observed that assessee raised this issue in an appeal against order passed u/s 154, where addition has been made to the book profits of assessee for years under consideration. As order passed u/s 143(3) by Ld. AO is not before us today. Accordingly, these Additional Grounds though, arising out of assessment proceedings, deserves to be admitted however stands dismissed as not arising out of the order passed by Ld. CIT (A) impugned before us. Disallowance of harvesting transportation charges - non deduction of TDS u/s 194C - assessee paid to the harvester on behalf of farmer and therefore, was not liable to deduct any TDS - no appeal against order of CIT(A) in earlier year on same issue - HELD THAT:- Admittedly, identical issue for assessment year 2011-12 has not been raised by revenue, meaning thereby, view adopted by Ld. CIT (A) stands accepted as on date. It is observed that for year under consideration, Ld.CIT(A) followed the view of his predecessor to allow claim of assessee. We do not find any infirmity in the view adopted by Ld.CIT(A).
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