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TMI Blog2019 (4) TMI 616X X X X Extracts X X X X X X X X Extracts X X X X ..... L MEMBER : Assessee is in appeal before the Tribunal against order of the ld.CIT(A)-1, Ahmedabad dated 21.9.2017 passed for the Asstt.Year 2014-15. 2. Assessee has taken three grounds of appeal. In ground no.2, it has pleaded that the ld.CIT(A) has erred in confirming inclusion of disallowance made under section 14A in the book profit determined under section 115JB of the Income Tax Act, 1961. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld 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 calculations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see has earned dividend income of Rs. 2,00,204/- which was claimed as exempt under section 10(34) of the Income Tax Act. The ld.AO proceeded to examine the expenses relating to earning this income which wass required to be disallowed under section 14A r.w. rule 8D of the Income Tax Rules. He ultimately worked out such disallowance at Rs. 1,51,005/- which included direct expenditure of Rs. 954/-, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that if there is net interest income then the interest expenditure cannot be disallowed. The relevant observation of Hon'ble Court reds as under: "14. While answering the question in favour of the assessee, we hold that for the purpose of applying the factors contained in clause (ii) of subrule (2) of Rule 8D, prior to its amendment with effect from 2.6.2016, what would be considered as am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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