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2018 (9) TMI 1624 - AT - Income TaxAddition u/s 14A - Held that:- The decision of Hon’ble High Court in PCIT Vs. Nirma Credit & Capital (P) Ltd. [2017 (9) TMI 485 - GUJARAT HIGH COURT] is brought to our notice and it is so held in the said decision that for the purpose of applying factors contended in clause (ii) of sub-rule (2) of rule 8D, prior to its amendment w.e.f. 02.06.2016, amount of expenditure by way of interest would be the interest paid by the assessee on borrowings minus taxable interest earned during the financial year. As a matter of fact CIT (A) also placed on reliance on the decisions of the ITAT reported in the case of Income Tax Officer, Ahmedabad Vs. Karnavati Petrochem Pvt. Ltd. [2014 (1) TMI 920 - ITAT AHMEDABAD]. No circumstances are brought to our notice to say as to why the decisions of the Tribunal stated above and also the decision of Hon’ble Gujarat High Court shall not be made applicable facts of the present case. We are convinced with the reasoning adopted by the Ld. CIT(A). MAT computation - calculating the income u/s 115JB - assessee had debited income from SEZ which is to the tune of ₹ 46,04,41,180/- besides not claiming deduction u/s 80 IAB of the Income Tax Act, 1961 and thereby reduced the book profit from ₹ 47,00,02,273/- to nil - Held that:- As decided in assessee's own case it is permissible under law for the assessee to claim deduction under sub section 1 of section 80 IAB of the Act for any 10 consecutive assessment years out of 15 years beginning from the year in which a special economic zone has been notified by the Central Government and it is not open for the AO to draw an inference that the assessee has to choose either the postponement of the benefits u/s 80 IAB of the Act or the deduction u/s 115 JB of the Act. Addition u/s 14 A of the Act while computing book of profit u/s 115 JB - Held that:- Special Bench of this Tribunal in ACIT Vs. Vireet Investment (P) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] (Special Bench) held that computation under clause (f) of explanation 1 to section 115 JB (2) of the Act is to be made without resorting to computation as contemplated u/s 14A of the Act r/w Rule 8D of the Rules. - Decided against revenue
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