Tribunal: Disallowance under sec 14A not added to book profit under sec 115JB

The Tribunal ruled that the disallowance made under section 14A r.w.r. 8D cannot be added when computing book profit under section 115JB. Such disallowances are for taxable income computation and do not affect book profit calculation. Therefore, the addition from section 14A r.w.r. 8D should not be included in book profit calculation under section 115JB. The assessee's ground on this issue was allowed, maintaining the appeal's outcome dated 26.06.2015 in ITA No.2277/Mds./2014. The Miscellaneous Application was granted on February 19, 2016, in Chennai.

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Issues Involved:
- Whether the disallowed amount under section 14A r.w.r. 8D can be added while computing book profit under section 115JB of the Act.

Analysis:

Issue 1: Disallowance under section 14A r.w.r. 8D for computing book profit under section 115JB

The Tribunal acknowledged that the assessee raised ground No.5 in ITA No.2277/Mds./2014, questioning the addition of Rs. 37,28,239 disallowed under section 14A r.w.r. 8D while computing book profit under section 115JB of the Act. The Tribunal failed to adjudicate on this specific issue initially. However, upon review, it was noted that the provisions of section 14A r.w.r. 8D had already been addressed in a previous order dated 19.06.2015. It was clarified that the disallowance made under section 14A r.w.r. 8D cannot be added when computing book profit under section 115JB. The Tribunal emphasized that such disallowances are for the purpose of computing taxable income and do not impact the book profit calculation under section 115JB. Therefore, any addition resulting from section 14A r.w.r. 8D should not be included in the computation of book profit under section 115JB. Consequently, the ground raised by the assessee was considered allowed, leading to no change in the final result of the appeal in ITA No.2277/Mds./2014 dated 26.06.2015.

Final Decision:
The Miscellaneous Application filed by the assessee was allowed, and the ground raised regarding the disallowance under section 14A r.w.r. 8D for computing book profit under section 115JB was considered allowed. The order was pronounced on Friday, the 19th of February, 2016, at Chennai.

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