9911796707
TMI Blog2018 (2) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) under section 115JB of the Act where the assessee has not claimed such expenditure to be nil. Respectfully following the said decision in the case of Jayshree Tea Industries Ltd. (2014 (11) TMI 1169 - CALCUTTA HIGH COURT) we set aside the impugned order of the Ld. CIT(A) on this issue and restore the matter to the file of the A.O. for computing the amount of expenditure relatable to the exempted income of the assessee independently by applying clause (f) of Explanation (1) under section 115JB of the Act without resorting to section 14A or Rule 8D - Decided partly in favour of assessee - I.T.A. No. 577/Kol/2016 - - - Dated:- 9-2-2018 - Shri P. M. Jagtap, AM And Shri Aby. T. Varkey, JM Shri D.S. Damle, FCA appearing on behalf of the Assessee Md. Usman, Addl. CIT (DR) appearing on behalf of the Revenue ORDER Per P. M. Jagtap, AM This appeal filed by the assessee is directed against the order of Ld. CIT(A) 16, Kolkata dated 30.03.2016. 2. Ground No. 1 to 8 raised by the assessee in this appeal involve a common issue relating to the addition of ₹ 18,91,12,786/- made by the A.O. and confirmed by the Ld. CIT(A) on account of the assessee s share of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 30.03.2015. 4. Against the order passed by the A.O. under section 143(3), an appeal was preferred by the assessee before the Ld. CIT(A) and a detailed submission was made on behalf of the assessee before the Ld. CIT(A) in support of its case that the addition made by the A.O. on account of its share of loss in the partnership firm while computing the book profit under section 115JB was not sustainable. The Ld. CIT(A) however did not find merit in the said submission and proceeded to confirm the addition made by the A.O. on this issue for the following reasons given in paragraph no 6 of his impugned order: I have carefully examined the A/R s submissions and also the observations and findings recorded by the A.O. in the assessment order. I have also perused the judicial decisions cited both by the assessee as well as the Assessing Officer. The A.O. added back the share of loss from partnership firm by invoking clause (ii) of Explanation (1) to Section 115JB of the Act. In AO s view, since the share of profit from the partnership firm is excluded under clause (ii) of Explanation (1) to Section 115JB of the Act, then by same analogy the loss from partnership firm d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of this Tribunal in the case of Metro Exporters Ltd. (supra) cited on behalf of the assessee before the authorities below as well as before us was rendered on a similar issue wherein it was held that the case of the assessee not being the case of share of profit from a partnership firm in the hands of the assessee credited to the profit and loss account, no addition for the purpose of computation of total income of the assessee under section 115JA could be made with regard to the share of loss from the partnership firm. The relevant observations recorded by the Tribunal while coming to this conclusion in paragraph no 4 of its order are reproduced hereunder: We have considered the rival submissions and have perused the orders of the Assessing Officer and the CIT(A). We find that the assessee has debited its share of loss from a registered firm to its profit and loss account and Assessing Officer has made the addition of the same to the net profit while computing the total income of the assessee as per provisions of section 115JA of the Act on the plea that share of profit of the assessee from a partnership firm is exempt from tax as per Chapter III under section 10(2)(a) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal No. 2 of the revenue is dismissed. 6. Although the decision of Metro Exporters Ltd. (supra) was rendered by the Tribunal in the context of the provisions of section 115JA, we find ourselves in agreement with the contention of the learned counsel for the assessee that the ratio of the same can be applied to decide the issue in the context of section 115JB, the provisions of which are analogous to the provisions of section 115JA. The Ld. CIT(DR), has also not raised any contention in this regard and simply relied on the order of the Assessing Officer. We, therefore, respectfully follow the decision of Mumbai Bench of this Tribunal in the case of Metro Exporters Ltd. (supra) and delete the addition made by the A.O. and confirmed by the Ld. CIT(A) on account of share of assessee s loss in the partnership firm while computing the book profit under section 115JB of the Act. Ground No. 1 to 8 of the assessee s appeal are accordingly allowed. 7. The issue raised in ground no 9 of the assessee s appeal relates to the addition of ₹ 75,75,430/- made by the A.O. and confirmed by the Ld. CIT(A) on account of expenditure disallowed under section 14A read with rule 8D while ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
