TaxTMI 
TaxTMI 
2022 (10) TMI 830
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....follows: The assessee is a company engaged in maintaining and operation of Airport. For the assessment year 2017-2018, the return of income was filed on 29.03.2019 declaring total income of Rs.27,41,30,320. Assessment u/s 143(3) of the I.T.Act was completed on 30.03.2021 determining the total income of the assessee at Rs.70,34,76,930. Subsequently, the A.O. passed order dated 18.06.2021 u/s 154 of the I.T.Act, wherein the book profit of the assessee were recomputed, as follows:- Sl. No. Particulars Amount 1. Inclusion of surplus of PSF (SC) of Rs.19,14,43,451 19,14,43,451 2. Disallowance u/s 14A at Rs.3,37,88,198 by applying Rule 8D as against the amount of disallowance u/s 14A made in the return of income at Rs.22,47,020 resulting....
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....D cannot be considered as the amount incurred to earn exempt income for the purpose of computation of Book Profit as per section 115JB. 3.The Learned CIT(A) failed to appreciate and ought to have held that for the purpose of computation of total income u/s 115JB the actual amount incurred for earning exempted income having regard to the books of account is to be considered and not the amount worked out based on formula prescribed in Rule 8D. 4.The Appellant therefore prays that the AO be directed to consider the amount for add back to the amount of net profit as is being incurred to earn exempted income having regard to books of account while arriving at the amount of Book Profit as per section 115JB. Ground III: Inclusion of surplus ....
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....d II 5. During the relevant assessment year, the assessee had earned dividend income of Rs.11,31,50,006 on investments made in joint venture companies. The assessee in the return of income filed had claimed exemption of the above said dividend income as per the provisions of section 10(34) of the I.T.Act. The A.O. while completing the assessment u/s 143(3) of the I.T.Act vide order dated 31.03.2021, had made disallowance u/s 14A of the I.T.Act of Rs.3,37,88,198 as against suo moto disallowance made by the assessee in the return of income amounting to Rs.22,47,020. The disallowance was made by the A.O. based on the formula prescribed under rule 8D of the I.T.Rules, 1962. Subsequently, in rectification u/s 154 of the I.T.Act, the A.O. made d....
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....is juncture, it would be beneficial to refer to the co-ordinate bench decision of this Court in the case of Karnataka State Industrial and Infrastructure Development Corporation Ltd. v. Dy. CIT [2021] 125 taxmann.com 221/278 Taxman 126/431 ITR 255 (Kar.), wherein the computation of book profit with reference to sections 14A and 115JB has been considered and it is held that Explanation 1 in section 115JB(2) has been inserted so as to provide that if any provision for diminution in the value of any asset has been debited to the profit and loss account, it shall be added to the net profit as shown in the profit and loss account for the purpose of computation of book profit. Any disallowance computed under section 14A pertains to computation of....
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....given by the Tribunal on the points inasmuch as invoking of section 154 and Explanation 1 (f) to section 115JB being squarely covered, the same cannot be found fault with. We are of the considered view that the Miscellaneous Petition filed by the revenue under section 254(2) of the Act was wholly misconstrued. The Tribunal has distinguished the case of Sobha Developers (supra) relied upon by the revenue with Vireet Investment (P.) Ltd. (supra) and has rightly come to the conclusion that the judgment of the Vireet Investment (P.) Ltd. (supra) rendered by the Special Bench consisting of three Hon'ble Members prevail over the Regular Bench consisting of two Hon'ble Members. Moreover, this view considered in the Vireet Investment (P.) L....
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....Tyres Limited v. CIT reported in (2022) 255 ITR 273 (SC) (ii) M/s.Batliboi Limited v. DCIT in ITA No.5248/Mum/2015 (order dated 17.02.2021) (iii) Assessee's own case in ITA Nos.620/Bang/2017, 633/Bang/2017, ITA No.603/Bang/2017 and ITA No.604/Bang/2017 for A.Y. 2010-11 to 2013-14. (order dated 11.02.2022) (iv) Assessee's own case in ITA No.2189/Bang/2016 for A.Y. 2009-2010 (order dated 09.07.2019) (v) Addl.CIT v. Mumbai International Airport Pvt. Ltd. in ITA Nos.2760 & 3232/Mum/2012 (order dated 30.11.2016) (vi) Mumbai International Airport Pvt. Ltd. v. DCIT in ITA No.4382/Mum/2015 for A.Y. 2012-2013 (order dated 27.11.2017) (vii) Mumbai International Airport Pvt. Ltd. v. DCIT in ITA No.2018/Mum/2018 for A.Y. 2013-2014 (order da....