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2023 (6) TMI 216 - AT - Income TaxAddition u/s 14A r.w.r. 8D - HELD THAT:- No hesitation in confirming the order passed by the Ld. CIT(A) who deleted the addition of interest expenditure u/s 8D(2)(ii). Administrative expenses under Rule 8D (2)(iii) - Disallowance made under Rule 8D(2)(iii) at 0.5% of the average value of investments made by the assessee, which earned only exempt income is liable to be disallowed u/s. 14A after excluding the investments which earned taxable income. Thus the disallowance to be made under Rule 8D(2)(iii) works out to Rs. 7,53,382/- only, however the assessee already disallowed a sum of Rs. 28,78,876/-, therefore no further disallowance is to be made on this account. Disallowance u/s. 14A read with Rule 8D while computing book profit under section 115JB - HELD THAT:- Recently, the Supreme Court of India in the case of Atria Power Corporation Ltd. [2022 (8) TMI 1322 - SC ORDER] dismissed the SLP filed by the Department against High Court’s ruling that disallowance made under section 14A could not be added in assessee-company's income for purpose of computation of income under section 115JB of the Act. Karnataka High Court in the case of J.J. Glastronics (P.) Ltd. [2022 (4) TMI 1187 - KARNATAKA HIGH COURT] held that amounts disallowed under section 14A could not be added to net profit while computing book profit under section 115JB of the Act. The ITAT Ahmedabad in the case of Vishal Export Overseas Ltd [2022 (8) TMI 88 - ITAT AHMEDABAD] held that disallowances made under section 14A read with rule 8D could not be applied to provision of section 115JB. Decided against revnue.
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