DCIT CORPORATE CIRCLE 1(1), CHENNAI vs. ACSYS INVESTMENTS PRIVATE LIMITED, CHENNAI

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The sole grievance of the revenue in the aforesaid appeal for Assessment Year (AY) 2014-15 is adjustment of disallowance u/s 14A while computing Book Profits u/s 115JB. The assessee has been assessed u/s 143(3) on 25.11.2016 wherein Ld. AO computed disallowance u/s 14A for Rs.18.01 Lacs in terms of Rule 8D(2) and added the same while computing income under normal provisions. However, in rectification order u/s 154, Ld. AO added the disallowance

ITA No.2512/Chny/2018 - 2 - while computing Book Profits u/s 115JB also. The assessee assailed this adjustment wherein Ld. CIT(A), relying on the decision of Special bench of Tribunal in Vireet Investment Pvt. Ltd. (82 Taxmann.com 415), deleted this adjustment. Aggrieved the revenue is in further appeal before us. 2. As rightly noted by Ld. CIT(A), this issue stood covered in assessee’s favor by the cited decision of special bench of this Tribunal. Subsequently, Hon’ble Karnataka High Court in Sobha Developers Ltd. vs. DCIT (125 Taxmann.com 72) held that disallowance u/s 14A is a notional disallowance and therefore, the same could not be added back while computing Book Profits u/s 115JB. Therefore, the impugned order could not be faulted with. 3. The appeal stand dismissed.

Order pronounced on 18th October, 2022.

Sd/- Sd/- (MAHAVIR SINGH) (MANOJ KUMAR AGGARWAL) उपा12 /VICE PRESIDENT लेखा सद9 / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 18-10-2022 EDN/- आदेश की Xितिलिप अ6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु� (अपील)/CIT(A) 4. आयकर आयु�/CIT 5. िवभागीय �ितिनिध/DR 6. गाड� फाईल/GF