HOTEL LEELAVENTURE LTD,MUMBAI vs. ADDL CIT RG 8(2), MUMBAI

PDF · subscribers
ITA 50/MUM/2016Status: DisposedITAT Mumbai25 October 2017AY 2012-133 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that no disallowance under Section 14A can be made when the assessment is based on the computation of book profit under Section 115JB. The Tribunal relied on a Special Bench decision to support this view.

What were the facts?

The assessee's appeal concerned the disallowance of expenses related to exempt income under Section 14A of the Income Tax Act. The Assessing Officer had made this disallowance, which was confirmed by the CIT(A).

What were the issues?

Whether disallowance under Section 14A is permissible when assessment is made on book profit under Section 115JB.

Which sections of the Income-tax Act were involved?

Section 14A,Section 115JB

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, “H” BENCH, MUMBAI

Before: SHRI MAHAVIR SINGH, JM & SHRI N. K. PRADHAN, AM

आदेश / O R D E R Per MahavirSingh (Judicial Member):- This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-17 [in short CIT(A)], in Appeal Number CIT(A)-17/IT-139/14-15 vide order dated 10/09/2015. Assessment was framed by Deputy Commissioner of Income Tax (OSD) (in short DCIT or AO), Range-8(2), Mumbai for assessment year 2012-

1.

ITA.No.50/Mum/2016 Hotel Leela Venture Limited, AY:12-13 13 u/s.143(3) of the Income Tax Act,1961 [hereinafter “the Act”] order dated 27/05/2014.

2.

The only issue this appeal of the assessee is against the order of CIT(A) confirming the action of the A.O. in disallowing expenses relatable to exempt income by invoking the provisions of section 14A of the Act r.w.s Rule 8D(2)((ii) of the Income Tax Rules, 1962 [hereinafter “the rules”]. For this assessee has raised following ground: “

(1) The Learned Commissioner of Income Tax (Appeals) erred in confirming the disallowance of Rs. 48,11,915/- to Book Profit as per clause (f) to explanation 1 u/s.115JB of the Income-tax Act,1961.”

3. At the outset, Ld. Counsel for the assessee stated that no disallowance u/s.14A of the Act r.w.r. 8D of the Rules can be made, in case assessment is on computation of book profit u/s.115JB of the Act and for this he relied on the proposition of this Tribunal Special Bench (Delhi) in the case of ACIT Vs Vireet Investments (P.) Ltd. (82 taxmann.com 415 (Del) (SB). We find that this issue is covered in favour of assessee and against revenue and respectfully the following the same, we delete disallowance and allow the appeal of the assessee.

4.

In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 25-10-2017.

More judgments on Section 14A

All 15,875 judgments and leading authorities on Section 14A →

Recent GST High Court judgments

Search GST case law →