2017 (10) TMI 1601

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....EMBER This appeal has been preferred by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals) - XVII, New Delhi for assessment year 2010-11 wherein vide order dated 18/07/2014, the Ld. Commissioner of Income Tax (Appeals) has upheld the disallowance of Rs. 10,39,543/- made by the AO under section 14A of the Income Tax Act, 1961 (hereinafter called "the Act"). 2. ....

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....tice proposing to rectify the order under section 154 of the Act was not served on the assessee. The assessee also challenged the disallowance on the ground that that the AO did not have the power to make the disallowance under section 154 of the Act and re-compute the book profit under section 115JB. However, the Ld. CIT (Appeals) dismissed the assessee's appeal and now the assessee is before the....

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.... of the Ld. CIT (Appeals) and submitted that the same should be upheld. 5. We have heard the senior DR and have also perused the material on record. It is undisputed that the AO has assumed jurisdiction under section 154 of the Act for making the disallowance under section 14A of the Act to the book profits computed under section 115 JB of the Act. The question as to whether 14A disallowance can ....

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....r section 14A read with Rule 8D is not to be added while computing the book profits under section 115JB. It has been held that the only actual expenditure debited to the Profit & Loss account is to be taken into consideration while computing the book profit under section 115JB. This shows that the issue is quite debatable and under such circumstances, in our view, it was beyond the powers of the A....