This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] � I, New Delhi dated 29.03.2019 pertaining to assessment year 2014-15.
ITA No. 4820/DEL/2019
IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘SMC’ BENCH,
NEW DELHI [THROUGH VIDEO CONFERENCE]
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
ITA No. 4820/DEL/2019
[Assessment Year: 2014-15]
Avonmore Capital & Management
3, Scindia House, 2nd Floor,
Connaught Place, Janpath,
The Dy. C.I.T
Circle - 3(2)
Date of Hearing : 15.09.2021
Date of Pronouncement : 15.09.2021
Assessee by : Ms. Ranu Jain, Advocate
Revenue by : Shri R.K. Gupta, Sr. DR
The sum and substance of the grievance of the assessee is that the ld CIT(A) erred in confirming the addition made by the Assessing Officer on account of disallowance made u/s 14A of the Income-tax Act, 1961 [hereinafter referred to as 'The Act'] for computing the book profit under section 115JB of the Act.
2.I have given thoughtful consideration to the orders below. I find that suo moto disallowance made by the assessee in its computation of income was not considered by it while computing book profit under MAT provision. I find that the Assessing Officer has invoked the provisions of Section 154 of the Act claiming that not considering the disallowance made u/s 14A of the Act has resulted into a mistake apparent from record which is rectifiable.
3. Be that as it may, this issue has now been settled by the Special Bench of the Tribunal in the case of Vireet Investment [supra] wherein it has been held that computation under clause (f) of Explanation 1 to Section 115JB(2) of the Act is to be made without resorting to computation as contemplated under section 14A r.w.r 8D of the Act. On both counts, the assessee succeeds. The Assessing Officer is directed to delete the disallowance made u/s 14A of the Act from computation of book profit under MAT provision.
4. In the result the appeal of the assessee in ITA No. 4820/DEL/2019 is allowed.
The order is pronounced in the open court on 15.09.2021 in the presence of both the representatives.
Please find attached the enclosed file for the full judgement