TMI Blog2018 (9) TMI 2111X X X X Extracts X X X X X X X X Extracts X X X X ..... ll details of travel expenses (which was furnished before the TPO) and another one containing details of ₹ 8.49 lakhs (which is extracted from the above said statement). Since full details have been furnished by the assessee before the TPO and since the entire foreign travel expenses have been incurred by the employees of the assessee for the purpose of business, we are of the view that addition of ₹ 8.49 lakhs sustained by learned DRP is liable to be deleted. Accordingly, we direct the Assessing Officer to delete the addition. Correct Head of income - interest income earned by the assessee from margin money deposits held with bank and interest on income tax refund - assessee offered both the above said income under the hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made by the assessee against the Provision for tax , which is appearing after Profit before tax . Accordingly, this issue has to be decided in favour of the assessee. Accordingly, we direct the Assessing Officer to delete the addition made by him to the book profit. Disallowance u/s. 14A under normal provisions of the Act as well as for computing book profit u/s. 115JB of the Act - HELD THAT:- As in assessee s own case in A.Y. 2009-10 [ 2017 (10) TMI 1624 - ITAT MUMBAI] and the Tribunal, by following the decision of Hon'ble Delhi High Court rendered in the case of Cheminvest Ltd. [ 2015 (9) TMI 238 - DELHI HIGH COURT ] has held that no disallowance u/s. 14A is required as the assessee did not earn any exempt income. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, since the travel was made to the places of Associated Enterprises. Accordingly the TPO made an adjustment of ₹ 50 lakhs on this issue. 5. The Learned DRP, however, accepted the contentions of the assessee that it has incurred expenses on the travel undertaken by employees of the assessee and the same cannot be considered as expenses incurred for benefit of AE and accordingly it cannot be taken as international transaction covered u/s 92 of the Act. However, learned DRP noticed that the assessee has furnished details of expenses only to the extent of ₹ 16.16 lakhs. Accordingly the AO disallowed the balance amount of foreign travel expenses amounting to ₹ 8.49 lakhs. 6. The Learned AR contended that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining details of ₹ 8.49 lakhs (which is extracted from the above said statement). Since full details have been furnished by the assessee before the TPO and since the entire foreign travel expenses have been incurred by the employees of the assessee for the purpose of business, we are of the view that addition of ₹ 8.49 lakhs sustained by learned DRP is liable to be deleted. Accordingly, we direct the Assessing Officer to delete the addition of ₹ 8.49 lakhs referred above 9. Next ground relates to head of income under which interest income earned by the assessee is assessable. During the year under consideration, the assessee received a sum of ₹ 230.24 lakhs as interest income from margin money deposits held with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the year was ₹ 22.69 crores. The assessee followed a method of accounting whereby it reduced the above said income tax amount of ₹ 22.69 crores from the gross collections and also from income tax provision, i.e. both Income tax provision (debited to Profit and Loss account) as well as Gross collections (credited to Profit and Loss account) was shown at net figure i.e. net of income tax recoverable. The Assessing Officer added the above said amount of ₹ 22.69 crores to the total income of the assessee, while computing total income under normal provisions of the Act and also to the net profit for the purpose of computing book profit u/s. 115JB of the Act. The Ld CIT(A) upheld the additions so made by the AO. 13. Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision for tax , which is appearing after Profit before tax . Accordingly, this issue has to be decided in favour of the assessee. Accordingly, we direct the Assessing Officer to delete the addition of ₹ 22.69 crores made by him to the book profit. 16. Next issue relates to disallowance made u/s. 14A of the Act under normal provisions of the Act as well as for computing book profit u/s. 115JB of the Act. 17. Learned AR submitted that the assessee has not received any exempt income during the year under consideration and hence the question of making any disallowance u/s. 14A of the Act does not arise. He submitted that identical issue was considered by the Coordinate Bench in assessee s own case in A.Y. 2009-10 (supra) and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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