2026 (3) TMI 529

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....w that reasonable cause has been attributed to the assessee in filing the belated appeal, hence, the delay in dispute is condoned, appeal is admitted for adjudication. 3. Brief facts of the case are that the assessee is engaged in the business of real estate activities. Assessee filed return of income declaring its total income at Rs. 2,13,27,837/- and at book profit of Rs. 3,09,69,622/- as per the provisions of Section 115JB of the Income Tax Act. Assessment was completed at a total income of Rs. 2,27,25,339/- thereby making an addition of Rs. 13,97,502/- under section 14A in normal income as well as increased the book profits for the calculation of MAT. In appeal, Ld. CIT(A) dismissed the appeal of the assessee. Aggrieved with the acti....

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.... dividend income of Rs. 13,97,502/- as per the provisions of section 115JB. In view of above, it is submitted that the AO erred in disallowance under section 14A and also making consequential adjustment while computing book profits under section 115JB of the Act, hence, the same may be deleted. 5. On the other hand, Ld. DR relied upon the orders of the authorities below. 6. We have heard the rival contentions and perused the records. We note that the assessee company is engaged in real estate business and assessee declared income from business, capital gains and other sources. The AO made the addition of Rs. 13,97,502/- under section 14A read with Rule 8D i.e. to the extent of exempt income being dividend from mutual funds. It is note....