2016 (1) TMI 219

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....ly ground in Revenue's appeal is with regrd to exclusion of overseas travel and communication expenditure incurred in foreign currency from the total turnover for the purpose of deduction u/s 10B of the Act. 3. We heard both the parties on the issue. In our opinion, this issue is squarely covered by the order of the Chennai Special Bench in the case of ITO vs Sak Soft Ltd, 313 ITR (AT) 353 wherein it was held that when any such amount is deducted from the export turnover from the numerator, the same shall also be deducted from the total turnover in the denominator while applying the formula (Profit X Export turnover / Total turnover) as provided under the Act. 4. In view of the above, we are inclined to dismiss the ground taken by the....

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....e to any income to which any of the provisions of Chapter III applies has to be added to the book profit. Under the provision contained in s. 14A, no deduction is to be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act. Since we are dealing with the issue of expenditure relating to dividend income, a matter falling under Chapter III, it becomes clear on perusal of these two provisions that they are similar in nature. Clause (f) uses the words "expenditure relatable to any income", while s. 14A uses the words "expenditure incurred by the assessee in relation to income". These words have the same meaning. We may also add here that S. 14A contains two mo....

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....applicable while interpreting cl. (f) of the Explanation." 14. In the case of Quippo Telecom Infrastructure Ltd. v. ACIT (supra), the Tribunal has observed that no addition to the book profit shall be made on account of alleged expenditure incurred to earn exempt income while computing the income under section 115JB of the Act. Therefore, we, respectfully following the decision of the Coordinate Bench of Delhi ITAT in the case of Goetze (India) Ltd. v. CIT (supra) and Quippo Telecom Infrastructure Ltd. v. ACIT (supra), we dismiss the ground raised by the Revenue." 8. Same view was taken by Chardigarh Bench of the Tribunal in I.T.A.No.897/Chd/2012 in the case of Nahar Industrial Enterprises Ltd vs Dy. CIT, order dated 10.9.2014, ....

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....g on an earlier decision of the Chandigarh Bench of the Tribunal in DCIT Vs. Ind Swift Ltd. in ITA No.729/Chd/2009 relating to assessment year 2006 -07 - date of order 30.11.2009 held as under: 5. We have heard the rival contentions and perused the record. The only issue arising in the present appeal is in respect of computation of book profits under section 115JB of the Act. The Assessing Officer while computing the said book profits had added back the disallowance worked out under section 14A of the Act of the net profits of the business and computed the tax liability of the assessee company thereafter. We find that the issue in the present case is covered by the order of the Chandigarh Bench of the Tribunal in DCIT Vs. Ind- Swif....