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TMI Blog2019 (4) TMI 2050X X X X Extracts X X X X X X X X Extracts X X X X ..... osed to law, equity, weight of evidence, probabilities and the facts and circumstances in the appellant's case. (2) The Ld. CIT (A) is not justified in holding that the jurisdiction assumed by the Ld. AO under the provisions of section 154 of the Act is proper on the facts and circumstances of the case. (3) The Ld. CIT (A) is not justified in holding that the Ld. AO was justified in adding back disallowance u/s 114A while computing Book Profitss u/s 115JB on the facts and circumstances of the case. (4) The Ld. CIT (A) failed to appreciate that interest u/s 234B and 234C are not sustainable in law and on the facts and circumstances of the case." 2. The assessment of the assessee was completed u/s 143(3) of the Act on 07/03/2016 with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on record. The sole disputed issue is in respect of disallowance u/s 14A for determining the Book Profits u/s 115JB. The Assessing Officer has completed assessment u/s 143(3) and subsequently was of the opinion that in determining the Book Profits disallowance u/s 14A was excluded. Therefore, issued notice and passed the order. We found that the Ld. AR has substantiated his claim with the judicial decisions and the Coordinate Bench decision in calculating the disallowance u/s 14A and relied upon [2017] 58 ITR (Trib) 313 (ITAT [Del]) in the case of ACIT vs. Vireet Investment Pvt Ltd in respect of the disallowance at para 6 which is as under: "6. We have considered the submissions of both the parties and have perused the record of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss under MAT provisions. 7. Further, the Ld. AR submitted that as per the financial statements referred at page 30 of the Paper Book, there is no dividend income received by the assessee and hence no disallowance is warranted. Ld. AR relied on the decision of the Delhi ITAT Bench in the case of P.N. Paper Mills Private Limited vs. ITO (ITA No.5567/Del/2014) at para 5 which is as under: "5. We have heard the senior DR and have also perused the material on record. It is undisputed that the AO has assumed jurisdiction under section 154 of the Act for making the disallowance under section 14A of the Act to the Book Profitss computed under section 115 JB of the Act. The question as to whether 14A disallowance can be made to the Book Profitss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on record. ITAT Mumbai Bench has also taken a similar view in the case of Beekaylon Synthetics Pvt. Ltd v. ACIT in ITA No. 7558/Mum/2013 which we respectfully follow and hold that the AO had no power to make a disallowance u/s 14A of the Act to the Book Profitss computed u/s 115JB by resorting to section 154 proceedings. We, accordingly, quash the order passed by the AO u/s 154 of the Act." 8. Therefore, we considering the ratio of above decision and facts of the case which are similar and are of the opinion that the disallowance u/s 14A shall not be considered for computation of Book Profits u/s 115JB of the Act. Accordingly, we set-aside the order of the CIT (A) and direct the Assessing Officer to delete the addition and allowed ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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