TMI Blog2014 (4) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... nce of expenditure by applying Rule 8D is not justified - no actual expenditure was debited in the profit and loss account relating to the earning of exempt income - the provisions of Sec. 14A cannot be imported into while computing the book profit u/s. 115JB of the Act inasmuch as clause (f) of Explanation to Sec. 115JB refers to the amount debited to the profit and loss account which can be added back to the book profit while computing book profit u/s. 115JB of the Act - the disallowance of expenses confirmed by the CIT(A) is set aside while computing book profit u/s. 115JB of the Act - no addition to the book profit shall be made for the expenditure of Rs. 113 crores while computing income u/s. 115JB – Decided in favour of Assessee. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re without prejudice to each other. The Appellant Company craves leave to add any other grounds and amend or withdraw, any of the aforesaid grounds of appeal as may be advised. ITA/1307/Mum/2011-AY. 2007-08: 2. Assessee-company, engaged in the business of investment, filed its return of income on 31. 03. 2007 declaring loss of Rs. 1, 23, 20, 51, 442/-. On 19. 02. 2009 it filed a revised return showing Nil income. In the revised return assessee claimed indexation on sale of shares. AO passed the assessment order on 26. 03. 2009 u/s. 143(3) of the Act declaring the business loss of the assessee at Rs. 39, 21, 70, 266/- and Short Term Capital Gain (STCG) of Rs. 21, 37, 18, 825/-. He allowed the business loss to be carried forward of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO that in case the working of disallowance claimed by the assessee (Rs. 88. 08 Crores), was found to be correct same should be accepted. 4. Before us, Authorised Representative(AR) submitted that provisions of Rule 8D of the Rules were not applicable during the year under appeal, that in the earlier three assessment years matter was restored back to the file of the AO by the Tribunal. Departmental Representative (DR) agreed to the proposal of sending back the matter to the file of the AO. 5. We have heard the rival submissions and perused the material before us. We find that E Bench of Mumbai Tribunal has, while deciding the appeal of the assessee for the AY. s. 2005-06 and 2006 -07(ITA/3850/Mum/2010-Ay. 2005-06, dated 29. 07. 2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the profit and loss account which can be added back to the book profit while computing book profit u/s. 115JB of the Act. In this connection, reliance can be placed upon the decision of ITAT Delhi Bench in the case of Goetze (India) Ltd. vs. CIT (2009) 32 SOT 101 (Del), wherein it has been held then provisions of Sub-Sec. (2) (3) of Sec. 14A cannot be imported into clause (f) of the Explanation to Sec. 115JA of the Act. In this view of the matter, we therefore, delete the disallowance of expenses confirmed by the CIT(Appeals) while computing book profit u/s. 115JB of the Act. In other words, no addition to the book profit shall be made on account of alleged expenditure incurred to earn exempt income while computing income u/s. 115JB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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