https://www.taxtmi.com/caselaws?id=776261 The ITAT Mumbai held that the share of loss from a partnership firm debited to the Profit and Loss Account cannot be added back to book profits under section 115JB by invoking clause (f) or clause (ii) of Explanation 1, as it does not constitute expenditure relatable to exempt income. The tribunal distinguished prior rulings relied upon by the revenue and affirmed that adjustments to book profits under section 115JB must strictly follow the specified clauses. Consequently, the addition of the share of loss by the AO was held to be incorrect, and the CIT(A) erred in upholding it. The AO was directed to recompute interest under sections 234C and 234D, if any, after giving effect to this decision. en-us Mon, 04 Aug 2025 00:00:00 +0530 Thu, 07 Aug 2025 07:04:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776261 The ITAT Mumbai held that the share of loss from a partnership firm debited to the Profit and Loss Account cannot be added back to book profits under section 115JB by invoking clause (f) or clause (ii) of Explanation 1, as it does not constitute expenditure relatable to exempt income. The tribunal distinguished prior rulings relied upon by the revenue and affirmed that adjustments to book profits under section 115JB must strictly follow the specified clauses. Consequently, the addition of the share of loss by the AO was held to be incorrect, and the CIT(A) erred in upholding it. The AO was directed to recompute interest under sections 234C and 234D, if any, after giving effect to this decision. Case-Laws Income Tax Mon, 04 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776261