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| The Tax Publishers2020 TaxPub(DT) 2702 (Bang-Trib) : (2020) 207 TTJ 0752 INCOME TAX ACT, 1961
Section 263
Addition under clause (f) to Explanation 1 to section 115JB had to be made independently without having regard to the provisions of section 14A read with rule 8D and, therefore, assessment order could not be treated as erroneous and prejudicial on this count.
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Revision under section 263 - Erroneous and prejudicial order - AO made no addition of amount disallowed under section 14A, while computing book profit under section 115JB -
CIT held assessment order as erroneous and prejudicial to the interest of revenue on the ground of AO having made no addition of amount disallowed under section 14A, while computing book profit under section 115JB. Held: For the purpose of adjustments contemplated in clause (f) of Explanation 1 to section 115JB(2) computation contemplated under section 14A read with rule 8D could not be considered. Since disallowance under section 14A read with rule 8D was quantified only notionally while book profit under section 115JB was computed on the basis of accounts maintained in accordance with Companies Act. Accordingly, assessment order could not be treated as erroneous and prejudicial.
Followed:Asstt. CIT v. Vireet Investments (P) Ltd. (2017) 82 Taxmann.com 445 (Del. Trib.) (SP) : 2017 TaxPub(DT) 1760 (Del-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
INCOME TAX ACT, 1961
Section 263
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