2013 (3) TMI 813

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.... On the facts and circumstances of the case and in law, the learned CIT(A) erred in not appreciating that no adjustment to 'book profit' u/s 115-JB vide clause (f) of the explanation to section 115-JB can be made by importing section 14A(2) and 14A(3) into the said clause. These being no such mandate available u/s 115-JB, therefore computation of ` 12,12,655/- as 'expense relatable to exempt income' under clause (f) of the Explanation to section 115-JB by adopting methodology laid down in Rule 8D is bad-in-law and needs to be cancelled. Computation of disallowance u/s 14A: Without prejudice to the above and without admitting, on the facts and circumstances of the case and in law, the learned CIT(A) erred in confirming disallowance of ....

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....h an adjustment cannot be made. He relied upon the decision of Quippo Telecom Infrastructure Ltd. v/s ACIT in ITA no. 4931/Del./2010. Further, he submitted the ground no. 1 will become purely academic as ultimately the income has been computed by the Assessing Officer under Section 115JB, therefore, disallowance made in the normal provision of the Act, will not have any effect. Thus, ground no. 1 was not pressed before us. 6. On the other hand, learned Departmental Representative submitted that disallowance under Section 14A can be adjusted while computing book profit under Section 115JB in view of Clause (f) of Explanation-1 to Section 115JB. Therefore, such an adjustment has rightly been made by the Assessing Officer. 7. We have caref....