ACIT Vs Oriental Insurance Co. Ltd. (ITAT Delhi)
ITAT Delhi held that while computing total income as per Rule 5 r.w. section 44, provisions of section 14A are not applicable. Further, disallowance method of computation of prescribed under Rule 8D is not applicable while “Book Profit” u/s 115JB.
Facts- The present appeal is preferred by the revenue against deletion of disallowance of Rs.21,36,52,058/- on account of u/s 14A of the Act (normal provision and provisions u/s 115JB of the Act).
The assessee submitted that income is to be computed as per provision 19 of section 44 r.w. Rule 5 of First Schedule. He submitted that it has been held by ITAT that while computing total income as per Rule 5 r.w. section 44, provisions of section 14A are not applicable. He submitted that as regards MAT issue, disallowance method of computation of prescribed under Rule 8D is not applicable while “Book Profit” u/s 115JB. He submitted that provisions of computing sub-section (2) and (3) of Section 14A cannot be imported into clause (f) of Explanation to Section 115JA while computing adjusted book profit.
Conclusion- Held that we observed that this issue is squarely covered by the aforesaid decision of ITAT and Hon’ble Delhi High Court in various assessment years in assessee’s own case, accordingly we uphold the order of ld. CIT (A). Hence this appeal of revenue is dismissed.
