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2021 (2) TMI 486 - HC - Income TaxTreatment to Professional Fees as income - provisional fees not being treated as income during the year by ignoring the Section 199 of the Act read with Rule 37BA of the Rules - Double addition - HELD THAT:- Tribunal has taken the view that the assessee had offered tax in the subsequent year and if any addition is made in the year under consideration, the same may amount to double addition, which would be contrary to the provisions of law. In such circumstances, we are of the view that no error could be said to have been committed by the Tribunal in taking such view. Disallowance u/s 14A of the Act in respect of the interest expenditure - HELD THAT:- In case of the assessee that netting of interest income and outgo is required to be done while invoking Rule 8D (2)(ii) of the IT Rules in the light of the decision of the Hon'ble Gujarat High Court in the case of Pr.CIT Vs. Nirma Credit & Capital (P.) Ltd. [2019 (7) TMI 33 - GUJARAT HIGH COURT] in view of the decision holding that interest earned by the assessee is required to be factored for the purpose of ascertaining the amount of expenditure incurred by the assessee by way of interest, we find merit in the plea of the assessee that Rule 8D(2)(ii) shall have no application in the given facts where the interest income earned outweigh the interest expenditure. In consonance with the decision of the Hon'ble Gujarat High Court, we decline to interfere with the conclusion drawn by the CIT(A) on the issue in favour of the assessee. Addition to book profit under Section 115JB being a mere 1 % of the exempt income - Admit this Tax Appeal on Question No.2[C] - Whether the Appellate Tribunal has erred in law and on facts in restricting the addition made to book profit under section 115JB being a mere 1 % of exempt income?
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