Disallowance u/s. 14A while computing book profit u/s. 115JB not justifiable: ITAT Mumbai

Arkis Enterprises Pvt. Ltd. Vs ITO (ITAT Mumbai)

ITAT Mumbai held that there is no relation of disallowance u/s. 14A while computing the book profit u/s. 115JB. Thus, lower authorities were not correct in adding notional expenditure as computed u/s. 14A and increasing the book profit by that sum u/s. 115JB.

Facts- AO noted that the assessee made investment in shares/mutual funds, and earned dividend of Rs.1,81,244/-claimed to be exempt. The Ld.AR noted that, the assessee claimed interest expenses in the P&L account of Rs.22, 62, 510/-. AO after consideri

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