TaxTMI 
TaxTMI 
2013 (8) TMI 937
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....urrent investments shown are made from the payments received from TNEB for the sale of electrical energy and they have no exempt income during the year as per the provisions of section 14A and as such this section has no application. However, the Assessing Officer has not accepted the submissions of the assessee and by applying section 14A r.w. Rule 8D disallowed `.89,24,289/-. 3. The assessee carried the matter in appeal before the ld. CIT(Appeals) and the ld. CIT(Appeals) deleted the addition made by the Assessing Officer. 4. On being aggrieved, the Revenue is in appeal before the Tribunal. 5. At the time of hearing, both parties have agreed that the very similar issue has been decided by the Tribunal in assessee's own case for the assessment year 2009-10 in I.T.A. No. 1322/Mds/2012 vide order dated 24.09.2012 and the Tribunal has remitted the issue back to the Assessing Officer for consideration afresh, being the facts of the present assessment year is also similar, it was prayed that the issue may be remitted back to the Assessing Officer. In view of the above submissions of both parties, we find appropriate to remit the matter back to the Assessing Officer to decide the iss....
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....ount of `. 89,24,289/- to the book profit under section 115JB. 9. On being aggrieved, the assessee carried the matter in appeal before the ld. CIT(Appeals) and it was submitted before the ld. CIT(Appeals) that the issue in this appeal is covered by the decisions of the ITAT Delhi Bench in the case of Goetze (India) Ltd. v. CIT (2009) 32 SOT 101(Del) and in the case of Quippo Telecom Infrastructure Ltd. v. ACIT in I.T.A. No. 4931/Del/2010 vide order dated 18.02.2011 and submitted that section 14A is not applicable for computation of book profit under section 115JB. The ld. CIT(Appeals), after considering the submissions of the assessee deleted the addition made by the Assessing Officer by observing as under: "5.1 I have carefully considered the facts of the case and the submission of the ld. AR. I have also gone through the decisions relied on by the AR. The AO has made an addition of Rs. 89,24,289/- on account of alleged expenditure incurred to earn exempt income while computing book profit u/s.115JB of the Act. A similar issue was considered by the Hon'ble ITAT, Delhi Bench in the case of Goetze (India) Ltd v. CIT (2009) (32 SOT 101) for AY. 2000-01. It was held by the ITAT ....
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....s, perused the material on record and gone through the orders of authorities below. The case of the Revenue is that whether 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. In the case of Goetze (India) Ltd. v. CIT (supra), the Delhi Bench of ITAT has observed as under: 4.6 We have considered the facts of the case and rival submissions. We may at the outset consider the provisions contained in c1. (f) of the Expln. to s. 115JA and sub-s. (1) of s. 14A of the Act. Under the aforesaid c1. (f), the amount of expenditure relatable 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 ....
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....ssessee had entered into two agreements with M/s GE Inc. USA for long-term operations and maintenance of its plant and supply of spares for preventive maintenance and unplanned break down. The amount payable under the agreements have been debited to the profit and loss account based on actual factored hire hours of gas turbine on the basis of average factored hour cost including customs duty applicable at the prevailing rate. The Assessing Officer, after perusing the agreement, has observed that the payments due towards maintenance and supply of spare parts are clearly determinable without there being any need for a provision. He further observed that the assessee has failed to furnish any satisfactory explanation as to why it has made provision for operation and maintenance and whether such provisions are made for what period of time and so on. In the absence of satisfactory explanation that the expenditure was debited on the basis of actual and that the provisions made was in relation to operation and maintenance with reference to factors which could be ascertained with reasonable accuracy and he held that the provisions made by the assessee are to be treated as adhoc and excessi....