TMI Blog2012 (7) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... computed under the normal provision of the Act, which are not applicable for determining book profits under section 115JB of the Act. - Decided in favour of assessee. - ITA No.1120/Chd/2011 - - - Dated:- 27-7-2012 - Ms. Sushma Chowla, Judicial Member And Shri Mehar Singh, Accountant Member For the Appellant : Shri Navdeep Sharma For the Respondent : Smt.Jyoti Kumari, CIT DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - as computed by the Appellant company in view of the decision of Bombay High Court in the case of Godrej Boyce Mfg. Co. Ltd V/s DCIT wherein the method of apportionment has been held to be recognised method for disallowanceu/s 14A of the Act. Directions may be given not to apply Rule 8D toworkout expenditure u/s 14A of the Act merely on surmises conjecturesand in the absence of any nexus prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 115JB of the Act, the Assessing Officer had added back the disallowance under section 14A of the Act and computed the tax liability of the assessee company. The learned A.R. for the assessee placed reliance on the ratio laid down by the Chandigarh Bench of the Tribunal in DCIT Vs. Ind-Swift Ltd. in ITA No.729/Chd/2009 relating to assessment year 2006-07 - date of order 30.11.2009. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book profits u/s 115 JB of the Act. The Assessing Officer while computing the book profit u/s 115 JB of the Act had added back the disallowance worked u/s 14A of the I.T. Act to the net profit shown in the profit and loss account and computed the profits for the year. The CIT (A) reworked the book profits by excluding the said notional disallowance u/s 115 JB of the Act, in turn following the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Tribunal in DCIT Vs. Ind-Swift Ltd. (supra) and following the same we direct the Assessing Officer to adopt the book profits as per the Profit Loss Account and do not make addition on account of disallowance worked out under section 14A of the Act, as such disallowance is computed under the normal provision of the Act, which are not applicable for determining book profits under section 115 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
