INCOME TAX ACT, 1961

Section 115JB read with section 14A

MAT - Computation of book profit under section 115JB - Consideration of disallowance under section 14A -

CIT passed order under section 263 holding that AO did not consider disallowance under section14A disallowance for purposes of computing book profit under section 115JB. Held: Assessee contended that issue stood fully settled by decision of Delhi Special Bench in case of ACIT v. Vireet Investments (P.) Ltd.,2017 TaxPub(DT) 1760 (Del-Trib). Assessee further contended that at the time of order passed by CIT under section 263, assessee did not have benefit of said decision, wherein it was held that, “computation under clause (f) of Explanation 1 to section 115JB (2) is to be made without resorting to the computation as contemplated under section 14A read with Rule 8D of income tax rules 1962.” In instant scenario as decision was available, order of CIT could not be upheld.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2010-11

SUBSCRIBE FOR FULL CONTENT