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2013 (11) TMI 364 - ITAT AHMEDABADDisallowance u/s 14A of the Income tax act – Invocation of section 14A where chapter VI-A applies – Held that:- Profit as per P & L A/c was Rs.7,80,29,871/- against which the assessee has claimed deduction u/s 80IB and u/s. 80P(2)(d) of IT Act. The total assessable income was computed at Rs.4,00,68,881/- - Provisions of Section 14A cannot be applied to the provisions of Chapter-VIA, i.e., in respect of deductions u/s. 80A to Section 80U of the IT Act - Deduction under the said Chapter is to be made out of the computation of the total income. Those deductions are not like exempted income - Section 14A are to be attracted in relation to income which does not form part of the total income, i.e., an income exempt under the Act – Reliance has been placed on the decision of ITAT Chennai Bench pronounced in the case of Tamil Nadu Silk Producers Federation Ltd. [2006 (4) TMI 229 - ITAT MADRAS-B] - Provisions of Section 14A have wrongly been invoked in this case – Decided against the Revenue. Rectification u/s 154, when the disallowance made u/s 14A – Held that:- Applicability of the provisions of Section 14A was a disputed issue hence not rectifiable u/s 154 of the IT Act.
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