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2021 (10) TMI 98 - AT - Income TaxRevision u/s 263 - AO has accepted the book profit declared by the assessee u/s 115JB of the Act without considering the addition u/s 14A - HELD THAT:- Pr CIT has taken the view that the amount disallowed u/s 14A of the Act while computing total income under normal provisions of the Act should be adopted for making addition to Net profit under clause (f) to Explanation 1 to sec. 115JB - view so expressed by Ld Pr. CIT was against the decision rendered by Special bench of Tribunal in the case of Vireet Investments (P) Ltd [2017 (6) TMI 1124 - ITAT DELHI] wherein it was held that the cfor the purpose of computing income under normal provisions of the Act cannot be imported for the purpose of addition to be made under clause (f) to Explanation 1 to sec.115JB for computing book profit, i.e., the amount to be added under above said clause has to be computed from the Profit and Loss account independently. A.R raised the contentions on applicability of provisions of sec.14A, yet we are of the view that the issue agitated here relates to the computation of book profit u/s 115JB of the Act and further the AO did not examine applicability of clause (f) to Explanation 1 to sec. 115JB while framing the assessment order. The same renders the assessment order erroneous and prejudicial to the interests of the revenue. PCIT has expressed the view, which is contrary to the decision rendered by the special bench in the case of Vireet Investments P Ltd (supra). Accordingly, we modify the order passed by Ld Pr. CIT and direct the AO to examine applicability of clause (f) to Explanation 1 to sec.115JB of the Act independently without having regard to the provisions of sec.14A of the Act. After affording adequate opportunity of being heard and untrammeled by the view expressed by Ld PCIT, the AO may take appropriate decision in accordance with law. Appeal filed by the assessee is partly allowed.
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