TMI Blog2015 (1) TMI 1444X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition. Ground No. 1 is accordingly allowed. Addition being securities transaction tax to the book profit computed u/s. 115JB - HELD THAT:- The said provision shows that it refers the amount of expenditure relatable to any income to which Sec. 10 other than the provisions contained in clause-38 thereof or section 11 or section 12 apply. In the case in hand the assessee has claimed exemption u/s. 10(38) of the Act therefore the assessee is covered by the exclusion provided in clause (f) to explanation-1 to Sec. 115JB of the Act. Therefore, we direct the AO to exclude addition being securities transaction tax from the book profit. Ground No. 3 is accordingly allowed. Addition wrongly accounted in the books of account of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal by the assessee preferred against the order of the Ld. CIT(A)-4 Mumbai dt. 3.1.2013 pertaining to A.Y. 2009-10. As common issues are involved in both these appeals, they were heard together and dispose of by this common order for the sake of convenience and brevity. ITA No. 4904/M/2012 A.Y. 2008-09 2. The assessee is trading in securities and also in the business of advisory service, finance leasing and investment in securities. The return for the year was selected for scrutiny assessment. During the course of the scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has earned dividend income of ₹ 16,92,522/- and long term capital gain of ₹ 85,74,072/-, both were claimed as exemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me which does not form part of the total income. Considering all these facts in the light of the provisions of Sec. 14A of the Act, we set aside the findings of the Ld. CIT(A) and direct the AO to delete the addition of ₹ 2,60,839/-. Ground No. 1 is accordingly allowed. 8. Ground No. 2(a) and 2(b) are consequential to our finding to ground No.1, therefore, ground No. 2(a) and 2(b) are treated as allowed in view of our findings given for ground No. 1. 9. Ground No. 3 relates to the addition of ₹ 2,03,107/- being securities transaction tax to the book profit computed u/s. 115JB. 10. A perusal of the assessment order shows that the addition has been made as per the explanation 1(f) of Sec. 115 JB of the Act. The said provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss account are not prepared in accordance with part-II of Schedule- VI and for the purpose of Sec. 115JB. Every company has to prepare its accounts in the manner provided in part-II and Part-III of Schedule-VI to the Companies Act 1956. Since the assessee s profit and loss account is not prepared in accordance with the relevant provisions of the Companies Act, the notional profit shown by the assessee has to be reduced while computing the book profit u/s. 115JB of the Act. Similar view has been taken by the Tribunal in the case of M/s. Bombay Diamond Co. Ltd in ITA No. 7488/M/07 wherein the Tribunal has held as under: The various other decisions relied on by the Ld. CIT(A) in his order are also not applicable. In none of the case it ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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