9911796707
TMI Blog2019 (10) TMI 1376X X X X Extracts X X X X X X X X Extracts X X X X ..... the ground that the order passed by the Ld. AO is prejudicial to the interest of the Revenue because, disallowance made U/s. 14A of the Act was not added back to the book profit while computing the MAT U/s. 115JB of the Act. 3. Brief facts of the case are that the assessee was a Private Limited Company now merged with M/s. Mylan Laboratories Limited. The assessee-company was engaged in the business of developing, manufacturing and supply of pharmaceuticals filed its return of income for the AY 2012-13 on 30/11/2012 admitting NIL income under normal provisions and Rs. 63,58,53,266/- under the MAT provisions. Initially, the return was processed U/s. 143(1) of the Act and subsequently the case was taken up for scrutiny and assessment was com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the assessee by the co-ordinate Bench of the Chennai Tribunal following the decision of the Co-ordinate Bench of the Mumbai Tribunal. The relevant portion of the order of the Chennai Bench of the Tribunal is reproduced hereunder for ready reference: "8.1.1 The Ld. Assessing Officer while computing the tax as per provisions of section 115JB of the Act made additions to the book profit with respect to the disallowance made U/s. 14A of the Act read with Rules-8D of the Income Tax Rules. On appeal, the Ld. CIT (A) citing the provisions of clause (f) of Explanation-1 to Section-115JB, confirmed the order of the Ld. Assessing Officer. The relevant portion of the order of the Ld. CIT (A) is reproduced herein below for reference:- "10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss account for the relevant previous year prepared under sub-section(2), as increased by - (a) To (e) . . . . . . . . . . . . . . . . . . . . . . . . (f) the amount or amounts of expenditure relatable to any income to which [Section-10 (other than the provisions contained in clause (38) thereof] or section 11 or section 12 apply; (g) To (j) . . . . . . . . . . . . . . . . . . . . . . . ." From the above it is apparent that the aforesaid provision of the Act does not refer to any disallowance made U/s. 14A of the Act while arriving at the Book Profit for the purpose of Section-115JB(2) of the Act. Further Section 14A of the Act is a provision with fiction disallowing the deemed expenditure attributable to exempt income viz., dividen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I of Schedule VI to the Companies Act" in section 115J was made for the limited purpose of empowering the Assessing Officer to rely upon the authentic statement of accounts of the company. While so looking into the accounts of the company, the Assessing Officer has to accept the authenticity of the accounts with reference to the provisions of the Companies Act, which obligate the company to maintain its accounts in a manner provided by that Act and the same to be scrutinised and certified by statutory auditors and approved by the company in general meeting and thereafter to be filed before the Registrar of Companies who has a statutory obligation also to examine and be satisfied that the accounts of the company are maintained in accordance ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
