TMI Blog2014 (1) TMI 1627X X X X Extracts X X X X X X X X Extracts X X X X ..... st Revenue. - ITA No.3881/Del./2012 - - - Dated:- 10-1-2014 - SHRI U.B.S. BEDI And SHRI B.C. MEENA, JJ. For The Appellant : Shri M.K. Sharma, AR For The Respondent : Shri Sameer Sharma, Senior DR ORDER PER B.C. MEENA, ACCOUNTANT MEMBER : This appeal filed by the revenue emanates from the order of CIT (Appeals)-XIX, New Delhi dated 21.05.2012. 2. The assessee company derives income from investment from business of investments and purchase/sale of land and immovable properties. During the year, the assessee has debited interest expenditure in P L account of ₹ 68,08,543/-. The assessee company suo moto disallowed ₹ 9,20,905/- u/s 14A of the Act. For the Assessment Year 2008-09, disallowance u/s 14A of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mal provisions in the impugned year though there is increased tax liability under the MAT provisions. The AR has brought to my notice the decision in the case of CIT vs. Nalwa Sons Investments Ltd 327 ITR 543 (Delhi). The Hon'ble High court observed as under as seen from the head notes: Under the scheme of the Income-tax Act, 1961, the total income of the assessee is first computed under the normal provisions of the Act and tax payable on such total income is compared with the prescribed percentage of the book profits computed under section 115JB of the Act. The higher of the two amounts is regarded as total income and tax is payable with reference to such total income. If the tax payable under the normal provisions is higher, such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;s claim or evidence or explanation. Clause (B) of the Explanation to section 271 (1) casts responsibility on the assessee to prove that the explanation given is bona fide and must substantiate that Explanation by means of some evidences. When the assessee has offered an Explanation based on some evidences, the Assessing Officer cannot invoke Part (B) of the Explanation unless he has given a finding based on some contradictory evidence to disprove the Explanation offered by the assessee. In this case, the assessee had discharged its burden by submitting the necessary Explanation and the Assessing Officer had not found the explanation to be false. 12. In the case of Kanbay Software India (P) Ltd. vs. DCIT (2009) 31 SOT 153 (Pune) the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses relating to earning exempt income being 12% of total expenses. The AO, being not satisfied with the said disallowance, worked out to disallowance of ₹ 51,68,967/- and added ₹ 43,53,486 / - after giving credit for the disallowance made by the appellant. The AO has levied penalty of ₹ 3,06,045/- u/s 271(1)(c) by considering the said amount of ₹ 43,53,486/- as concealed income. The main contentions of the AR are as under: The tax liability u/ s 115JB was more than the tax liability under normal provisions. Rule 8D cannot be invoked while computing book profit under section 115JB of the Act, since no such adjustment u/s14A permissible in section 115JB No suppression of facts. 15. No positive m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme of the Income-tax Act, 1961, the total income of the assessee is first computed under the normal provisions of the Act and tax payable on such total income is compared with the prescribed percentage of the book profits computed under section 115JB of the Act. The higher of the two amounts is regarded as total income and tax is payable with reference to such total income. If the tax payable under the normal provisions is higher, such amount is the total income of the assessee, otherwise, the book. profits are deemed as the total income of the assessee in terms of section 115JB of the Act. Where the income computed in accordance with the normal procedure is less than the income determined by legal fiction, namely; the book profits unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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