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TMI Blog2019 (1) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... . Deputy Commissioner of Income Tax in Tax Appeal No.1186 of 2018 order dated 1.10.2018 has held that since appeal against the judgment of High Court in the case of Gujarat State Road Transport Corporation Ltd. (supra) is pending, and SLP has been granted, liberty was given to assessee to file an application for revival of appeal, in case Hon’ble Supreme Court reverse the decision of the High Court on the issue. Addition while computing book profit u/s 115JB - similar addition was made u/s 14A while computing normal income of the assessee-company - Held that:- Special Bench answered this question in favour of the assessee and held that computation for the purpose of clause (f) of Explanation 1 to Section 115JB(2) is to be made without re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt has observed that judgment of Hon ble Gujarat High Court in the case of Gujarat State Road Transport Corpn. Ltd. (supra) and other cases have been challenged before the Hon ble Supreme Court. There are two possibilities, one is that, the assessee should approach the Hon ble Supreme Court against the confirmation of disallowance at the end of the Hon ble Court, and other way is to make some arrangement under which without filing appeal, the assessee would also be able to claim benefit of judgment. Looking to this smallness of the dispute of the amount, Hon ble High Court has adopted other option i.e. to give liberty to the assessee to file application to revive the appeal within three months after the decision of Hon ble Supreme Court. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court on the issue. 5. It is pertinent to observe that if judgment of Hon ble High Court in the case of Gujarat State Road Transport Corporation Ltd. (supra) is being reversed by the Hon ble Supreme Court, then the Tribunal order will be construed as suffering from apparent error, because foundation of the order would be extinguished. The assessee will always at liberty to file application for rectification under section 254(2) of the Income Tax Act. By giving a blanket time limit, till the decision of Hon ble Supreme Court, we would be enhancing power of the Tribunal for rectification of its order under section 254(2). Even if we set aside the issue to the file of AO, then he has to pass assessment order within three months giving eff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Bench of the ITAT in the case of Vireet Investment P.Ltd. (supra) has formulated following question for adjudication on this issue: Whether the expenditure incurred to earn exempt income computed u/s.14A could not be added while computing book profit u/s.115JB of the Act. 9. Special Bench answered this question in favour of the assessee and held that computation for the purpose of clause (f) of Explanation 1 to Section 115JB(2) is to be made without resorting to the computation as contemplated under section 14A r.w. rule 8D. Respectfully following the above decision of the Special Bench, we allow this ground of appeal and direct the AO not to make adjustments in book profit for the purpose of MAT liability on the basis of calcu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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