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2021 (10) TMI 260 - AT - Income TaxAddition u/s. 14A while computing the book profit u/s. 115JB - HELD THAT:- During the course of assessment, the Assessing Officer has added the disallowance made u/s. 14A to the book profit computed u/s. 115JB of the act. The ld. CIT(A) has restricted the addition to the extent of ₹ 35,440/- as disallowance computed by the assessee company. With the assistance of ld. representatives, we have gone through the decision of VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] wherein it is held that expenditure incurred to earn exempt income not to be added for computing book profit u/s. 115JB of the Act. Therefore, following the decision of the Co-ordinate Bench as above we consider that decision of ld. CIT(A) in sustaining the part of the addition is not justified, therefore the impugned addition is deleted and appeal of the assessee is allowed on this issue. Disallowance u/s. 14A - Expenses incurred on earning exempt income - HELD THAT:- As in Adani Agro (P) Ltd. [2018 (2) TMI 1215 - GUJARAT HIGH COURT] wherein it is held that there was no question of disallowing administrative expenses u/s. 14A r.w.r. 8D in excess of the total administrative expenditure incurred by the assessee. In the light of the above, we restrict the disallowance u/s. 14A to the extent of ₹ 35,440/- as the amount computed by the assessee pertaining to the interest attributable to the exempt income and the disallowance out of administrative expenditure up to such expenditure i.e. ₹ 39,386/-. Accordingly, we restrict the total disallowance. Appeal of the assessee is partly allowed.
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