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TMI Blog2017 (9) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... booked profit under section 115JB of the Act. - Tax Appeal No. 557 of 2017 - - - Dated:- 6-9-2017 - MR. AKIL KURESHI AND BIREN VAISHNAV For The Appellant : MR KM PARIKH, ADVOCATE ORAL ORDER ( PER : HONOURABLE MR.JUSTICE AKIL KURESHI) 1. Revenue is in appeal against the judgment of the Income Tax Appellate Tribunal dated 27.12.2016 raising following questions for our consideration: A. Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that Authorities below were indeed in error in sustaining the impugned disallowance of ₹ 79.30lacs without appreciating that the A.O. had correctly made addition of ₹ 79.30 lacs in accordance with the provision of Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied with the claim of the assessee regarding expenditure. The Tribunal observed as under: The incorrectness of the Assessing Officer is evident from the fact that undisputedly the interest free funds of the assessee are far in excess of the investments yielding tax exempt income, and in such a situation, as held by Hon'ble jurisdictional High Court, in the case of CIT vs. UTI Bank Limited [(2013) 32 taxmann.com 370 (Guj)], has approved the stand of this Tribunal in following the principle, laid down by Hon'ble Bombay High Court in case of CIT v. Reliance Utilities Power Ltd. (supra), which states that if there are interest free funds available to an assessee sufficient to meet its investments and at the same time the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra thereof reads as under: 35. As we have already seen, the quantum of expenditure disallowed by the AO by invoking the provisions of Sec.14A of the Act while computing total income under the normal provisions of the Act has not been challenged by the Assessee and the said disallowance has been accepted by the Assessee. In such circumstances, we do not see any reason why the same disallowance cannot be adopted while arriving at the book profits u/s. 115JB (2) of the Act read with Explanation 1(f) thereto. In our view the CIT(A) has fallen into an error in coming to a conclusion contrary. We therefore reverse the order the CIT(A) and restore the order of the AO in this regard. 7. These observations of the Tribunal in case of S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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