TMI Blog2013 (3) TMI 813X X X X Extracts X X X X X X X X Extracts X X X X ..... s 115-JB: On the facts and circumstances of the case and in law, the learned CIT(A) erred in not appreciating that no adjustment to book profit u/s 115 JB vide clause (f) of the explanation to section 115 JB can be made by importing section 14A(2) and 14A(3) into the said clause. These being no such mandate available u/s 115 JB, therefore computation of ` 12,12,655/ as expense relatable to exempt income under clause (f) of the Explanation to section 115 JB by adopting methodology laid down in Rule 8D is bad in law and needs to be cancelled. Computation of disallowance u/s 14A: Without prejudice to the above and without admitting, on the facts and circumstances of the case and in law, the learned CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss account. In view of ratio laid down by various ITAT s decision, such an adjustment cannot be made. He relied upon the decision of Quippo Telecom Infrastructure Ltd. v/s ACIT in ITA no. 4931/Del./2010. Further, he submitted the ground no. 1 will become purely academic as ultimately the income has been computed by the Assessing Officer under Section 115JB, therefore, disallowance made in the normal provision of the Act, will not have any effect. Thus, ground no. 1 was not pressed before us. 6. On the other hand, learned Departmental Representative submitted that disallowance under Section 14A can be adjusted while computing book profit under Section 115JB in view of Clause (f) of Explanation 1 to Section 115JB. Therefore, such a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ack to the book profit, while computing the book profit under Section 115JB. This view is well supported by the decision of ITAT, Delhi Bench, in the case of Quippo Telecom Infrastructure Ltd. v/s ACIT (supra), wherein various other decision of Tribunal has been followed. Accordingly, we hold that no disallowance under Section 14A can be imported while computing the book profit under Section 115JB because once, the assessee has not debited any such expenses for earning of exempt income in the profit and loss account, the Assessing Officer has no power to tinker with such accounts which has been approved by the Board of Directors and filed before the Registrar of Companies. Accordingly, ground no. 2 stands allowed. Ground no. 1 is treated as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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