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2022 (4) TMI 1187 - HC - Income TaxRectification u/s 154 - book profit in terms of Explanation 1(f) to Section 115JB (2) is not being done with regard to the provisions of Section 14A - HELD THAT:- Section 115JB of the Act is a complete code in itself. The controversy relating to disallowance u/s 14A of the Act for determining book profit under Section 115JB was dealt with, in extenso in the case of Vireet Investment Private Ltd.[2017 (6) TMI 1124 - ITAT DELHI] As in the case of Karnataka State Industrial and Infrastructure Development Corporation Ltd. [2021 (1) TMI 413 - KARNATAKA HIGH COURT] wherein the computation of book profit with reference to Sections 14A and 115JB has been considered and it is held that Explanation 1 in Section 115JB(2) has been inserted so as to provide that if any provision for diminution in the value of any asset has been debited to the profit and loss account, it shall be added to the net profit as shown in the profit and loss account for the purpose of computation of book profit. Any disallowance computed under Section 14A pertains to computation of income under the normal provisions of the Act and cannot be read into the provisions of Section 115JB of the Act pertaining to computation of book profits for levy of minimum alternate tax. Amounts disallowed under section 14A cannot be added to the book profits computed under Section 115JB. Thus the finding given by the Tribunal on the points inasmuch as invoking of Section 154 and Explanation 1 (f) to Section 115JB being squarely covered, the same cannot be found fault with. We are of the considered view that the Miscellaneous Petition filed by the revenue under Section 254(2) of the Act was wholly misconstrued. - Decided in favour of assessee.
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