Case Law Details
Sri Vishnu Shankar Mill Vs ITO (ITAT Chennai)
Section 14A read with Rule 8D(2) of the 1962 Rules cannot be invoked for making disallowance u/s 115JB of the 1961 Act but disallowance of expenses incurred relatable to earning of an exempt income is to be computed in accordance with Explanation 1(f) to Section 115JB of the 1961 Act, in accordance with ratio of decision of Special Bench in the case of Vireet Investment(supra).
We also remit this matter back to the file of the AO for making additions to the Book Profit u/s.115JB in accordance with decision of the Hon’ble Special Bench of the tribunal in the case of Vireet Investment (P) Limited (supra) read with explanation 1(f) to Section 115JB of the 1961 Act.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal filed by assessee is directed against appellate Order dated 28.01.2019 passed by learned Commissioner of Income Tax (Appeals)-1, Madurai (hereinafter called “the CIT(A)”), in ITA No. 0200A/2016-17 for assessment year (ay) 2014-15, the appellate proceedings before learned CIT(A) had arisen from assessment order dated 29.12.2016 passed by learned Assessing Officer (hereinafter called“the AO”) u/s.143(3) of the Income-tax Act, 1961 (hereinafter called “the Act”).
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