TMI Blog2013 (12) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the profit and loss account - It is axiomatic that unless any expenditure is incurred and claimed as deduction, there can be no question of any hypothetical disallowance u/s 14A - The amount disallowable u/s 14A is covered under clause (f) of Explanation (1) to section 115JB(2) - Following M/s. RBK Share Broking Pvt.Ltd. v. ITO [2013 (12) TMI 74 - ITAT MUMBAI] - Decided against assessee. - ITA No.4679/Mum/2012 - - - Dated:- 23-8-2013 - Shri R. S. Syal, AM And Shri Sanjay Garg, JM,JJ. For the Appellant : Shri Subhash Shetty For the Respondent : Shri R. R. Prasad ORDER Per R. S. Syal (AM) :- This appeal by the assessee is directed against the order passed by the Commissioner of Income-tax (Appeals) on 18.05. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. 4. We are not convinced with the contention advanced on behalf of the assessee. The manifest reason is the following definition of the term intangible asset given in Explanation (3) to section 32(1) :- (b) intangible assets, being know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature . 5. A bare perusal of the definition of intangible assets on which depreciation is available u/s 32 makes it vivid that the intangible assets so classified are know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature. We are reminded of the rule of nosticur a sociis which simply means that the general wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade mark etc. Reverting to the extant case, only an intangible asset of the nature of know-how, patents, copyrights, trademarks, licences, franchises etc. can be brought within the ambit of any other business or commercial right . The legislature has made its intention crystal clear by the use of words of similar nature immediately after the words any other business or commercial rights . This makes the position beyond any pale of doubt that any other business or commercial rights would only be such which are of the nature of know-how, patents, copyrights, trade marks, licences, franchises etc. As noticed supra, there is a vast difference between know-how, patents, copyrights, trade marks, licences, franchises etc. on one hand and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit u/s 115JB, the A.O. added this disallowance of ₹ 4.15 lakh as per clause (f) of Explanation 1 to section 115JB. The learned CIT(A) upheld the assessment order on this point. 7. We have heard the rival submissions and perused the relevant material on record. Book-profit' u/s 115JB is computed as per Explanation (1) to sub-section (2) of section 115JB. This Explanation provides that book profit means net profit as shown in the profit and loss account for the relevant previous year prepared under sub- section (2) as increased by certain amounts specified under clauses (a) to (i) if debited to the profit and loss account and clause (j) if not credited to the profit and loss account. The amount so determined is further adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny expenditure relatable to' the exempt dividend income would fall under clause (f). The ld. AR argued that unless an amount is specifically debited to the Profit and loss account in respect of an exempt income, the same cannot be brought within the purview of clause (f) of the Explanation 1 to section 115JB(2). He stated that since the disallowance u/s 14A is computed as per rule 8D, the origin of the expenses disallowed cannot be traced to the profit and loss account and hence it cannot be covered within the mischief of clause (f) of the Explanation. We fail to find any logic in this submission because of the clear language of the Explanation 1, which provides in unequivocal terms that the amount of expenditure relatable to' the e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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