Infosys Ltd. Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that addition of Special Economic Zone books profits while computing books profits under section 115JB of the Income Tax Act is unsustainable in law in terms of Special Bench of Delhi Tribunal decision in the case of ACIT vs. Vireet Investment (P) Ltd.
Facts- One of the issues in the present case is addition of SEZ book profits u/s 115JB. The only issue for consideration is whether the disallowance u/s 14A if any could be added for computing the book profits of the assessee.
Conclusion- Held that this issue is no longer res integra and the same stands settled by the decision of the Special Bench of Delhi Tribunal in case of ACIT vs. Vireet Investment (P) Ltd. We accordingly direct the AO to delete the disallowance added while computing book profits.
Further, it was submitted that disallowance made towards section 10AA was also added to the book profits while computing 115JB.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
Present appeals are filed by assessee and revenue for A.Ys. 2007-08 to 2011-12.
2. It is submitted that following issues are common with A.Y. 2012-13 and facts and circumstances of these issues are also identical with that of A.Y. 2012-13. The Ld.DR did not object to the above submissions of the assessee. This Tribunal has considered the common issues in A.Y. 2012-13 in IT(TP)A No. 718/Bang/2017 by order dated 28/11/2022 in great detail. The view taken therein are applied mutatis mutandis for the years under consideration. For the sake of convenience and to put in summary manner, we are only referring to the relevant paragraphs wherein these issues have be considered and decided in the order dated 28/11/2022.
