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TMI Blog2023 (7) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... - Shri G.S. Pannu, President, And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Jose Pulikkodan For the Revenue : Smt. Mahita Nair ORDER The present appeal has been filed by the assessee challenging the impugned order dated 02/03/2023 passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [ learned CIT(A) ], for the assessment year 2015-16. 2. In this appeal, the assessee has raised the following grounds:- 1. In the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that an order u/s 154 of the Income-tax Act, 1961(IT Act, 1961) dated 28.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proximate relationship with the investment exempt income, to be linked to any particular expenses, for the purpose of invoking the provisions of explanation 1 of clause (f) of section 115JB(2) of the IT Act, 1961. 5. The Appellant craves to reserve the right to add, alter, or amend any ground or grounds of appeal on or before the hearing. 3. The brief facts of the case as emanating from the record are: The assessee is a manufacturer and exporter of pharmaceutical products. For the year under consideration, the assessee filed its return of income on 30/09/2015, declaring a total income of Rs. 3,95,99,830. Subsequently 20/10/2015, the assessee filed its revised return of income. The return filed by the assessee was selected for s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the working showing the disallowance of Rs. 9,02,01,184 under section 14A read with Rule 8D. The Assessing Officer vide order dated 22/12/2017, passed under section 143(3) of the Act came to the conclusion that out of the total interest cost of Rs. 8,97,03,854, debited to the profit and loss account a sum of Rs. 7,19,30,654, is directly attributable to investments in units of mutual funds from which exempt income by way of dividends is received. Accordingly, the AO came to the conclusion that the same is liable for disallowance in terms of provisions of section 14A read with Rule 8D and computed the disallowance of Rs. 9,02,01,085, under section 14A and, inter-alia, added the same to the total income of the assessee under normal provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated under section 14A read with Rule 8D of the Income-tax Rules, 1962. Thus, respectfully following the aforesaid decision of the Special Bench of Tribunal cited supra, we direct the AO to compute the book profit under section 115JB of the Act, without resorting to computation under section 14A read with Rule 8D. Grounds No. 3 and 4 raised in assessee s appeal are accordingly decided. 9. Grounds No. 1 and 2 raised in assessee s appeal were not pressed during the hearing. Accordingly, the same are dismissed as not pressed. 10. In the result, the appeal by the assessee is partly allowed. Order pronounced in the open Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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