2014 (2) TMI 745

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....under:    "On the facts and circumstances of the case and in law, the ld. Assessing Officer has erred in disallowing a sum of Rs.8,59,101/- as expenditure incurred, to earn exempt income, applying section 14A, which is applicable to chapter IV, while calculating book profit u/s.115JB of the Income Tax Act, 1961." The same has been adjudicated by the tribunal vide para 8 of its impugned order, reading thus:    "8. We have heard the parties, and perused the material on record, including the order by the tribunal in its own case for AY 2006-07. The rationale of the provision (cl. (f) of Explanation 1 to s. 115JB) is unexceptional. Cl. (ii) of Explanation 1 provides for the reduction of the net profit as per the P&L....

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....., per the assessee's books. On this proposition being advanced to the ld. AR, requiring him to make out a prima facie case, only upon which the restoration to the assessing authority could be made by us, he conceded to the impugned adjustment as being reasonable. We, therefore, confirm the same, dismissing the assessee's additional ground." The assessee per its present application, placing reliance on a number of decisions, as under, states that in deciding the issue raised by its additional ground, the tribunal has not followed the decision of the coordinate bench in the assessee's own case for an earlier year, i.e., A.Y. 2006-07:    a) Sundarjas Kanyalal Bhatija & Ors. Vs. Collector, Thane, Maharashtra & Ors.[1990] 183 IT....

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....nd no basis for cancellation or for even a case for restoration of the matter to the assessing authority as having been made out and, accordingly, dismissed the assessee's additional ground. On what basis, in view thereof, we fail to understand, does the assessee claim the tribunal's order to be mistaken in terms of section 254(2)? In fact, during the course of the hearing in the rectification proceedings, it was submitted by the ld. AR that the interest on the borrowing, which stood disallowed by the Assessing Officer (A.O.) u/s.14A, stood invested in shares on which no dividend income stands actually received. The same, firstly, is at variance with the arguments adopted before us (during the hearing of the appeal); rather, would go to ....