TaxTMI 
TaxTMI 
2022 (4) TMI 169
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....19/03/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 28/12/2017 by the ld. Income Tax Officer-14(1)(1), Mumbai (hereinafter referred to as ld. AO). ITA No.7194/Mum/2019 (A.Y.2010-11) 2. The ground No.1 raised by the Revenue is challenging the action of the ld. CIT(A) deleting the addition made on account of club membership fees. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is a listed company and engaged in the business of handling containers, bulk and liquid cargo and to provide ancillary port services at Pipavav in Gujarat. We find that assessee had debited a sum of Rs. 5,52,847/- on account of club membership fees and expenses. The ld. AO observed that assessee was not able to establish with any cogent evidences that such club membership has resulted in promotion of its business. The ld. AO also observed that membership of the club is a personal privilege entitling the member to use and enjoy the property of the club and all other amenities, benefits and facilities provided therein. The ld. AO also placed reliance on....
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....he ld. CIT(A) in deleting the disallowance made u/s.14A of the Act. 4.1. We have heard rival submissions and perused the materials available on record. We find that assessee during the year had not earned any exempt income which fact is not in dispute. The ld. AO directly applied the computation mechanism provided in second and third limb of Rule 8D(2) of the Income Tax Rules and made disallowance of Rs. 14,03,84,683/- in the assessment. The ld. CIT(A) placed reliance on the decisions of various High Courts including decision of the Hon"ble Apex Court in the case of PCIT vs. Oil Industry Development Board reported in 103 taxmann.com 326 wherein it was held that the disallowance u/s.14A of the Act could not be made in the absence of exempt income. The law is very much settled in view of the decision of the Hon"ble Supreme Court in the case of Maxopp Investments reported in 402 ITR 640 wherein it had been held that disallowance u/s 14A of he Act cannot be invoked in the absence of exempt income and there cannot be any quarrel on this issue. Hence, we do not find any infirmity in the order of the ld. CIT(A). Accordingly, the ground Nos.2 & 3 raised by the Revenue are dismissed. ....
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.... Rs. In Million Profit before exceptional item and tax 3608.27 Exceptional Items 345.82 Profit before Tax 3262.45 6.2. The computation of book profit u/s.115JB of the Act was started by the assessee from profit before tax of Rs. 326,24,53,348/-. This goes to prove that assessee had indeed claimed deduction of exceptional item of Rs. 345.82 Million (Rs. 34.58 Crores) while computing its book profit u/s.115JB of the Act. The ld. AO show-caused the assessee as to why this exceptional item of Rs. 34.58 Crores should not be added back while computing book profits u/s.115JB of the Act. The main premise of the ld. AO in this regard was that when the very same sum was disallowed by the assessee while computing its income under normal provisions of the Act, why the same should not be the subject matter of disallowance / adjustment while computing book profit u/s.115JB of the Act. The assessee gave a reply stating that this sum of Rs. 34.58 Crores reflected under exceptional item in profit and loss account does not fall within the list of items that were to be added back in accordance with Explanation-1 to Section 115JB(2) of the Act. The assessee also drew the attenti....
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....lected for "limited scrutiny" under CASS wherein one of the items was "verification of large other expenses claimed in the profit and loss account". According to the assessee, this item of "large other expenses claimed in the profit and loss account" would only relate to verification of expenses for computation of total income under normal provisions of the Act and the same cannot be extended for computation of book profits u/s.115JB of the Act. This argument did not find favour with the ld. CIT(A) and accordingly, the ld. CIT(A) confirmed the action of the ld. AO by observing that the purpose of scrutiny, be it "complete scrutiny" or "limited scrutiny", is only to determine the total income of assessee and that the determination of total income certainly would include determination of total income under normal provisions of the Act as well as in the computation of book profits u/s.115JB of the Act. 6.4. The ld. AR before us reiterated the contentions raised before the lower authorities as detailed supra. At the outset, we find that the case of the assessee is selected for limited scrutiny under CASS wherein one of the items that required to be verified is "verification of large....