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TMI Blog2020 (10) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act for A.Ys. 2013-14 and 2014-15. CIT(A) directing AO to exclude the investments which have not yielded any exempt income during the year - HELD THAT:- We find that this issues are squarely covered by the decision of the Special Bench of the Delhi Tribunal in the case of ACIT v. Vireet Investments Private Limited [ 2017 (6) TMI 1124 - ITAT DELHI ] . Thus, we sustain the order of the Ld.CIT(A) and reject the grounds raised by the Revenue. - Shri C.N. Prasad, Hon'ble Judicial Member And Shri S. Rifaur Rahman, Hon'ble Accountant Member For the Assessee : Shri M.M. Golvala And Shri Amey Wagle For the Department : Shri Amit Pratap Singh ORDER PER C.N. PRASAD (JM) 1. These appeals are filed by the assessee and Revenue against differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ressed. 4. Briefly stated the facts are, the Assessing Officer while completing the assessments for these two assessment years computed the disallowance u/s. 14A r.w. Rule 8D of I.T. Rules and the same was disallowed while computing even the book profits u/s. 115JB of the Act. 5. At the outset, Ld. Counsel for the assessee submitted that this issue has been decided in favour of the assessee by the Tribunal for the A.Y.2012-13 in ITA.No. 2332/Mum/2016 dated 28.06.2018 wherein the Tribunal accepted the disallowance as computed by the assessee for the purpose of computation u/s. 115JB of the Act. The method of allocation of expenses has been consistently followed by the assessee and therefore the disallowance as computed as per Rule 8D shall n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e working made by the assessee. The AO also accepted the working of expenses relating to exempt income made by the assessee for computing books profit under Section 115JB of the Act. 4. In appellate proceedings the learned CIT(A) held that the amount worked out for disallowance under Section 14A of the Act has to be adopted while computing the book profit under Section 115JB of the Act. In this regard the learned CIT(A) placed reliance on the decision rendered by the Mumbai Bench of the Tribunal in the case of Godrej Consumer Products Ltd. vs. Addl. CIT 48 taxmann.com 293. Accordingly he directed the AO to add the amount computed under Section 14A of the Act for the purpose of Section 115JB of the Act. 5. It is pertinent to note that the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... book profit under Section 115JB is liable to be set aside. The assessee also took us to the working made by it for ascertaining the expenses relating to exempt income for the purpose of computation of book profit under Section 115JB of the Act. We noticed that the assessee has allocated expenses in the ratio of taxable income and exempt income and the said method was determined by the Department in A.Y. 2000-01. It is stated that the same method is being followed for A.Y. 2000-01 onwards by the assessee. Since a consistent method is being followed by the assessee for more than 10 years and since the allocation of expenses is on the basis of exempt income and taxable income, we are of the view that the computation made by the assessee for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for the relevant previous year prepared under sub-section (2),as increased by the amount or amounts of expenditure relatable to any income to which (section 10(other than the provisions contained in clause (38) thereof )or section 11 or section 12 apply and all the relevant expenditure has to be added back to income for MAT computation. 9. On hearing both the parties, we find that this issues are squarely covered by the decision of the Special Bench of the Delhi Tribunal in the case of ACIT v. Vireet Investments Private Limited [165 ITD 27]. Thus, we sustain the order of the Ld.CIT(A) and reject the grounds raised by the Revenue. 10. In the result, appeals of the assessee are allowed and appeals of the Revenue are dismissed. 11. Before p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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