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2016 (7) TMI 1548

..... sion of the CIT(A) that in the absence of any dividend or any other exempt income received in the instant year, no disallowance under section 14A of the Act is merited, is very much apt, as it is in line with the judgment of the Hon’ble Delhi High Court in the case of Cheminvest Ltd. Vs. CIT, [2015 (9) TMI 238 - DELHI HIGH COURT] . Thus, we have no hesitation in approving the stand of the CIT(A) on this aspect. In any case, so far as the decision of the CIT(A) in retaining the suo-motu disallowance made by the assessee is concerned, the same is not an issue before us. Thus, we hereby affirm the order of the CIT(A) on the aspect agitated by the Revenue. As a consequence, Revenue fails in Ground of appeal No.1. Computation of ‘boo .....

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..... instead of ₹ 105,83,54,495/-." 2. Whether in the facts and circumstances of the case and in law, the Ld. CIT(A) is justified in directing the AO to delete the addition worked out u/s.14A r.w. Rule 8D of the Act while computing the book profits under section 115JB of the Act relying on the decision of Hon'ble ITAT in the assessee's own base for AY 2006-07 ignoring the fact that the decision has not been accepted by the department and appeal has been filed in Hon'ble High Court which is pending. " 3. At the time of hearing, it was a common point between the parties that the issues raised in the aforestated Grounds have been decided by the Tribunal in assessee s own case for earlier assessment years. So however, in .....

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..... ) also noticed that since assessee had made suo-motu disallowance of ₹ 6,93,26,005/- under section 14A of the Act in the return of income filed in response to notice under section 153A of the Act, he directed the Assessing Officer to retain such disallowance on the ground that the corresponding expenditure could not be said to be incurred wholly and exclusively for the purposes of business . Against the decision of the CIT(A), Revenue is in appeal before us contending that there is no justification to reduce the disallowance to ₹ 6,93,26005/- instead of ₹ 105,83,54,495/- which was determined by the Assessing Officer under section 14A of the Act by applying Rule 8D of the Rules . 6. At the time of hearing, Ld. Representativ .....

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..... of appeal No.1. 7. In so far as the second Ground is concerned, the same relates to computation of book profit in terms of section 115JB of the Act. The Assessing Officer, while computing book profit under section 115JB, added the amount of disallowance computed under section 14A of the Act. The assessee contended before the Assessing Officer that there was no justification for taking into consideration the disallowance under section 14A of the Act, while computing book profit under section 115JB of the Act. The CIT(A) has disagreed with the stand of the Assessing Officer on two counts Firstly, according to the CIT(A), in assessment year 2006-07, the Tribunal in assessee s own case vide ITA No.244/Banga/2010 dated 22/2/2013 has considered a .....

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