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2024 (6) TMI 1060 - AT - Income TaxIssues Involved: 1. Disallowance under Section 14A of the Income Tax Act, 1961. 2. Computation of book profit under Section 115JB. 3. Inclusion of self CENVAT Credit in book profit under Section 115JB. 4. Deduction under Section 80IB and 80IC. 5. Addition under Section 68 of the Income Tax Act, 1961. Summary: Issue 1: Disallowance under Section 14A The assessee contended that the CIT(A) erred in disallowing Rs. 23,85,191/- under Section 14A. The Tribunal noted that similar issues were previously decided in favor of the assessee for earlier assessment years. The CIT(A) had followed the precedent, holding that investments were made from the assessee's own funds, thus no disallowance on account of interest could be made under Section 14A with Rule 8D. The Tribunal upheld this view, directing the AO to verify the details and restrict disallowance to administrative expenses only. Issue 2: Computation of Book Profit under Section 115JB The assessee challenged the disallowance under Section 14A while computing book profit under Section 115JB. The Tribunal, referring to earlier decisions and relevant case law, held that no disallowance under Section 14A should be made while computing book profit. The ground was allowed in favor of the assessee. Issue 3: Inclusion of Self CENVAT Credit in Book Profit under Section 115JB The assessee contested the inclusion of self CENVAT Credit of Rs. 71,65,295/- in book profit. The Tribunal, citing its earlier orders, held that self CENVAT credit cannot be treated as part of book profit. This ground was decided in favor of the assessee. Issue 4: Deduction under Section 80IB and 80IC The assessee argued against the reduction of certain other income while computing deductions under Sections 80IB and 80IC. The Tribunal noted that the CIT(A) had already allowed this in favor of the assessee in a common order dated 13-10-2017. Issue 5: Addition under Section 68 The Revenue's appeal included a challenge to the deletion of an addition of Rs. 2.05 crores made under Section 68. The CIT(A) found that the assessee had adequately explained the source of the cash seized during a search operation. The Tribunal upheld the CIT(A)'s decision, confirming that the nature and source of the cash balance were satisfactorily explained. Conclusion The Tribunal allowed the assessee's appeal for statistical purposes and dismissed the Revenue's appeal. The order was pronounced in the open court on 20.06.2024.
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