2021 (4) TMI 336

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....e pertain to part deletion of disallowance made under section 14A of the Act, both under the normal provisions as well as while computing income under section 115JB of the Act. 3. Briefly the facts are, the assessee is a resident company and is engaged in the business of development of real estate and is a hotelier. For the assessment year under dispute, assessee filed its return of income on 30-11-2013 declaring income of Rs. 12,47,31,480/- under the normal provisions and book profit of Rs. 29,58,28,664/- under section 115JB of the Act. While examining the balance-sheet of the assessee, the assessing officer noticed that the assessee has shown investment of Rs. 458,38,23,734/- as on 31-03-2013, as compared to Rs. 441,38,63,638/- as on 3....

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....Rs. 51,03,366/- along with dividend income while computing disallowance under section 14A. Insofar as the issue of disallowance under section 14A r.w.r.8D while computing book profit under section 115JB is concerned, learned Commissioner (Appeals), relying upon certain judicial precedents including the decision of Tribunal, Delhi Special Bench, in case of CIT vs Vireet Investments (P) Ltd 82 taxmann.com 415, deleted the disallowance. 4. The learned Departmental Representative, while relying upon the observations of the assessing officer submitted, disallowance under section 14A has to be made in terms of Rule 8D. Further, he submitted, Explanation I(f) to section 115JB empowers the assessing officer to make disallowance of expenditure fo....