Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI
The aforesaid appeal has been filed by the revenue against impugned order dated 16.8.2016, passed by Ld. CIT (Appeals) 36 New Delhi for the assessment year 2010-11. Grounds raised by the revenue reads as under:- “In the facts and under the circumstances of the case, Ld. CIT(A) has erred in deleting the addition of Rs. 4,28,65,241/- made by the AO to the book profit u/s 115JB on account of expenditure relatable to income exempt u/s 10 of the Act in view of the provision of section 14A read with clause (f) of explanation 1 to section 115JB.”
The facts in brief are that the qua the issue involved are that, assessee had invested amount of Rs. 49,53,49,937/- in shares, securities and investment in a partnership firm from where assessee has derived exempt income, that is, it does not form part of the total taxable income. AO has made disallowance u/s 14A while computing the book profit u/s 115JB, because the assessment has been on tax computed on book profit u/s 115JB, because the same was higher than the normal provision. Ld. CIT (A) following the ITAT order for the assessment year 2007-08 and 2008-09 has deleted the said disallowance.