TaxTMI 
TaxTMI 
2023 (4) TMI 144
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....irst Appellate Authority or in short 'Ld. F.A.A.') in regard to the appeal before it arising out of assessment order dated 22.12.2017 u/s 143(3) of I.T. Act, 1961 (hereinafter referred to as 'the Act') passed by DCIT, Circle- 13(2), New Delhi (hereinafter referred as Ld. Assessing officer or in short Ld. AO). 2. The facts are that Assessee filed return of income declaring loss of Rs. 89,44,337/- under normal provisions and at book loss of Rs. 1,93,82,227/- which was subsequently revised on 31.03.2017 at total loss of Rs. 40,00,72,770/- and book loss of Rs. 20,57,82,537/-. The case of assessee was selected for scrutiny and assessee was asked to submit note an applicability of Section 14A of the Act. Assessee had claimed that assessee had ma....
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....l or as stock-in-trade. However, where the shares are held as stock-intrade, the expenditure incurred for earning business profits will have to be apportioned and allowed as a deduction It is, however, seen that consistent legal opinion including the ratio taken in Maxopp Securities is that in respect of disallowance u/s 14A is that the disallowance cannot exceed the exempt income. In the year under reference the total exempt income was Rs. 1,59,826/-. Therefore, on the basis of following judgments the disallowance is restricted to Rs. 1,59,826/-." 3. Further, Ld. AO had also made a variation in the book profit on account of addition due to disallowance u/s 14A for the purpose of Section 115JB of the Act which has been sustained by Ld. CI....
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....earing." 4.1. And the Assessee is in appeal raising following grounds :- 1. "On the facts and circumstances of the case and in law the Id. CIT (A) has erred in passing appellate order in the name of amalgamated company which has ceased to exist on amalgamation. 2. On the facts and circumstances of the case and in law the Id. CIT (A) have failed to hold the assessment order as nullity since the same was passed on assessee which has ceased to exist. 3. On the facts and circumstances of the case and in law the Id. CIT (A) has erred in upholding AO's act of recomputing appellant book loss under the provisions of section 115JB, when the section applies to assessee having book profits. 4. On the facts and circumstances of the case an....
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....e other hand in regard to the appeal of Revenue the Ld. DR submitted that Ld. CIT(A) has fallen in error in not considering the principles that allowability or disallowability of expenditure cannot be conditional upon earning of income. At same time defended the stand of Ld. CIT(A) in regard to appeal filed by Assessee. 8. Now, giving thoughtful consideration to the matter on record and submissions, at the outset, the argument of the Ld.AR with regard o interpretation, that u/s 115JB of the Act only in case of reporting profit variation to arrive at Book profits can be made, the Bench is not impressesd. As a matter of law, "income" or "profits and gains" should be understood as including 'loss' also so that 'profits and gains' repr....