2019 (4) TMI 616

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....DR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER : Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-1, Ahmedabad dated 21.9.2017 passed for the Asstt.Year 2014-15. 2. Assessee has taken three grounds of appeal. In ground no.2, it has pleaded that the ld.CIT(A) has erred in confirming inclusion of disallowance made under section 14A in the book profit determined under ....

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.... answered this question in favour of the assessee and held that computation for the purpose of clause (f) of Explanation 1 to Section 115JB(2) is to be made without resorting to the computation as contemplated under section 14A r.w. rule 8D. Respectfully following the above decision of the Special Bench, we allow this ground of appeal and direct the AO not to make adjustments in book profit for th....

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.... On scrutiny of the accounts it revealed to the AO that the assessee has earned dividend income of Rs. 2,00,204/- which was claimed as exempt under section 10(34) of the Income Tax Act. The ld.AO proceeded to examine the expenses relating to earning this income which wass required to be disallowed under section 14A r.w. rule 8D of the Income Tax Rules. He ultimately worked out such disallowance at....

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....td., (2017) reported in 85 taxmann.com 72 (Guj) = 300 CTR 286 (Guj) held that if there is net interest income then the interest expenditure cannot be disallowed. The relevant observation of Hon'ble Court reds as under: "14. While answering the question in favour of the assessee, we hold that for the purpose of applying the factors contained in clause (ii) of subrule (2) of Rule 8D, prior ....