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2022 (1) TMI 1022 - AT - Income TaxDisallowance u/s 14A while computing book profit u/s 115JB - MAT computation - HELD THAT:- The Hon’ble jurisdictional High Court in the case of CITv. Gokaldas Images Pvt. Ltd. [2020 (11) TMI 345 - KARNATAKA HIGH COURT] had held that while computing the book profits, the disallowance u/s 14A of the I.T.Act cannot be added. It was held by the Hon’ble High Court that any disallowance computed u/s 14A of the I.T.Act pertain to the computation of income under the normal provisions of the Act and it cannot be read into the provisions of section 115JB - Thus we hold that the CIT(A) is justified in deleting the addition while computing the book profit u/s 115JB of the I.T.Act. It is ordered accordingly. Provision for NPA in the profit and loss account added u/s 115JB to arrive at the book profit - CIT(A) directed the A.O. to verify and delete the addition made to the book profits u/s 115JB of the I.T.Act to the extent the same is reduced from the gross advances in the balance sheet on the assets side - HELD THAT:- The assessee bank had debited an amount towards provision for Non Performing Advances and reduced the same from the gross advances (assets side) while preparing the balance sheet. Therefore, it has been treated as write off and not as provision for diminution in value of asset. The assessee bank had furnished the working in support of its claim that the provision for bad doubtful debts to the extent of provisions debited in the profit and loss account was reduced from the gross advances in the balance sheet on assets side. The CIT(A) has only directed the A.O. to verify and delete the addition made to the book profit to the extent the same is reduced from the gross advances in the balance sheet on the assets side. Therefore, we see no infirmity in the order of the CIT(A) and we uphold the same. It is ordered accordingly. Recomputation of book profit u/s 115JB - HELD THAT:- A.O. u/s 143(3) r.w.s. 250 of the I.T.Act, the A.O. has recomputed the book profit u/s 115JB of the I.T.Act by making various additions, which were not part of either the original assessment order nor the first appellate order dated 26.03.2018. Therefore, the assessee had challenged the action of the Assessing Officer before the CIT(A), stating that the A.O. had exceeded his jurisdiction while giving effect to the order of the CIT(A). The assessee has also raised grounds on merits with regard to addition of net depreciation on investments amounting - We noticed that these grounds taken by the assessee before the CIT(A) has not been adjudicated in the impugned order dated 11.03.2019. Therefore, we restore these issues to the files of the CIT(A). The CIT(A) is directed to adjudicate the issues raised in grounds 2 and 3 before the Tribunal [ground 2, 2.1 and 3.5 before the CIT(A)]. The CIT(A) is directed to afford reasonable opportunity of hearing to the assessee.
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