TMI Blog2014 (5) TMI 1082X X X X Extracts X X X X X X X X Extracts X X X X ..... irected 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 115JB of the Act. - Decided in favour of assessee - ITA No. 870/Chd/2013 - - - Dated:- 6-6-2014 - T. R. Sood (Accountant Member) And Sushma Chowla (Judicial Member) For the Petitioner : Akhilesh Gupta For the Respondent : Jaikaran Singh ORDER Sushma Chowla (Judicial Member) The appeal filed by the Revenue is against the order of the Commissioner of Income Tax(Appeals)-II, Ludhiana dated 28.06.2013 aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the record. The issue arising in the present appeal is in relation to computation of book profits under section 115JB. The Assessing Officer while computing the book profits had added back disallowance worked out under section 14A of the Act to the net profits of the business. The plea of the assessee in this regard was that the assessee itself had disallowed sum of ₹ 42,37,722/- on account of disallowance under section 14A of the Act under regular provisions and ₹ 32,86,397/- under section 115JB provision in its return of income on proportionate basis. The Assessing Officer recomputed the book profits under section 115JB of the Act and the CIT (Appeals) deleted the same against which the Revenue is in appeal. 6. We find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT (A) reworked the book profits by excluding the said notional disallowance u/s 115 JB of the Act, in turn following the ratio laid down by the Apex Court in Apollo Tyres Ltd. 255 ITR 273 (SC). We are in conformity with the order of CIT(A). The adjustments, if any, to be made to the profit shown in the profit and loss account, are provided in the section 115 JB of the Act itself. There is no provision in the Act to make adjustment on account of notional disallowance worked out under section 14A of the Act. The Hon'ble Supreme Court in Apollo Tyres Ltd. (supra) held that the profits of the business are not to be disturbed for computing the book profits except in the circumstances provided under the said Act. We confirm the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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