INCOME TAX ACT, 1961

Section 115JB read with section 14A Rule 8D

MAT - Computation of book profit - Treatment of disallowance under section 14A read with rule 8D -

CIT(A) had on facts directed AO to restrict under section 14A read with rule 8D disallowance(s) of Rs. 6,01,17,716 and Rs. 5,39,20,281 to Rs. 16,85,257 and Rs. 3,64,065 (assessment year-wise) for the purpose of MAT adjustment under section 115JB Explanation (f). Held: The instant issue of section 14A read with rule 8D disallowance for the purpose of section 115JB MAT computation was no more res integra. Bombay High Court's judgment CIT v. Bengal Finance & Investment (P) Ltd. ITA No. 337 of 2013, dated 10-2-2015 : 2018 TaxPub(DT) 145 (Bom-HC) and this Tribunal's Special Bench decision in Asstt. CIT v. Vireet Investments (P) Ltd. (2017) 82 Taxman.com 415 (Del-Trib) : 2017 TaxPub(DT) 1760 (Del-Trib) settle this issue in assessee's favour that such a disallowance was not to be subjected to MAT adjustment. Revenue's contentions in supporting CIT(A) directions to this effect therefore, stand rejected.

Followed:CIT v. Bengal Finance & Investment (P) Ltd. ITA No. 337 of 2013, dated 10-2-2015 : 2018 TaxPub(DT) 0145 (Bom-HC) and Asstt. CIT v. Vireet Investments (P) Ltd. (2017) 82 Taxman.com 415 (Delhi-Trib) : 2017 TaxPub(DT) 1760 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13 & 2013-14

INCOME TAX ACT, 1961

Section 14A Rule 8D

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