https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=460247 https://www.taxtmi.com/caselaws?id=460247 Disallowance u/s.14A in book profits u/s.115JB - CIT(A) deleted addition - HELD THAT:- Since ITAT has been consistently deleting the adjustment made to the book profits u/s 115JB of the Act on account of disallowance of expenses as per the provision of section 14A of the Act in the case of the assessee itself right from AY 2009-10 TO 2011-12 and even in Asst.Year 2015-16 considering the decision of Alembic Ltd. [ 2017 (1) TMI 513 - GUJARAT HIGH COURT] and Vireet Investment P.Ltd. [ 2017 (6) TMI 1124 - ITAT DELHI] and the fact that the ld.DR being unable to distinguish the decisions cited (supra) to the facts of the present, we see no reason to interfere in the order of the CIT(A) deleting the adjustment made to the book profits of the assessee on account of expenses disallowed u/s 14A following the consistent view taken by the ITAT in this regard in the case of the assessee itself - Decided in favour of assessee. TP upward adjustment u/s.92CA(3) - corporate guarantee fees - CIT(A) deleted addition - HELD THAT:- This issue was consistently decided in favour of the assessee by the ITAT right from Asst.Year 2008-09 to 2011-12 and even in Asst.Year 2015-16. Copies of all these orders were placed before us. It was also pointed out that the issue was covered by the decision of Micro Ink [ 2015 (12) TMI 143 - ITAT AHMEDABAD] wherein it was held that the issuance of corporate guarantee did not constitute international transactions and no TP adjustment is liable to made. Thus, no reason to interfere in the order of the CIT(A) deleting upward adjustment. Disallowing employee s contribution towards PF and ESIC u/s 36(1)(va) r.w.s.2(24)(x) - HELD THAT:- Since the issue stands settled and decided against the assessee in view of the decision in the case of Checkmate Services P.Ltd. [ 2022 (10) TMI 617 - SUPREME COURT] wherein it has been held that the provision of section 36(1)(va) of the Act warrants addition to the income of the assessee to the extent of amount so delayed to be deposited in the relevant funds. The ground raised by the assessee are accordingly dismissed. Disallowance of expenditure incurred for the purpose of earning exempt income as per section 14A - Addition restricted by CIT(A) to the extent of exempt income earned by the assessee - HELD THAT:- CIT(A) had restricted the disallowance to extent of exempt income earned by following the decision of Corrtech Energy Ld. [ 2014 (3) TMI 856 - GUJARAT HIGH COURT] . Since the ld.DR was unable to distinguish the said case before us, nor was he brought to our notice any contrary decisions of Hon ble jurisdictional High Court or of the Apex Court, we see no reasons to interfere in the order of the ld.CIT(A) restricting the disallowance of expenditure under section 14A of the Act to the extent of exempt income earned by the assessee. Case-Laws Income Tax Thu, 04 May 2023 00:00:00 +0530