Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

In thecaseofDCIT Vs. Sobha Developers (supra)rendered by ITAT Bangalore Bench wherein it was held that the disallowance u/s.14A of the Act made while computing total income under the normal provisions of the Act can also be adopted while determining book profits u/s.115JB in terms of Explanation- 1(f) to Sec.115JB(2) of the Act. The ratio laid down in the said decision of the Bangalore Bench has not been approved by a full bench (Special Bench) of ITAT Delhi in thecaseofVireet Investments (supra), which decision was rendered after the decision rendered by the Bangalore Bench of ITAT.

Shanti Prime Publication Pvt. Ltd.

Sec. 14A & 115JB of Income Tax Act, 1961— MAT- Disallowance u/s 14A cannot be added back to the book profit u/s. 115JB.

Facts: Whether disallowance u/s 14A can be added back to the book profit u/s. 115JB

Held, that amount to be added while computing book profits u/s. 115JB , the AO cannot in terms of Explanation 1(f) to Sec.115JB(2), add the sum determined as disallowance u/s. 14A while computing total income under the normal provisions of the Act and he has to adopt a basis as laid down by the Special Bench viz., direct expenditure associated with earning of income. - ASSTT. CIT V/s M.N. DASTUR COMPANY PVT. LTD. - [2020] 26 ITCD Online 101 (ITAT-BANGALORE)