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Income Tax Appellate Tribunal - Ahmedabad

The Dy. Cit., Circle-1(1),, Baroda vs Gujarat State Fertilizers & Chemicals ... on 27 July, 2017

       IN THE INCOME TAX APPELLATE TRIBUNAL
                    AHMEDABAD "A" BENCH

(BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
        & SHRI S. S. GODARA, JUDICIAL MEMBER)

                         ITA. No: 2312/AHD/2014
                        (Assessment Year: 2006-07)


     The DCIT,       Circle-1(1), V/S Gujarat State Fertilizers &
     Baroda                           Chemicals     Ltd.     P.O.
                                      Fertilizer Nagar, Baroda-
                                      391750
     (Appellant)                       (Respondent)


                           PAN: AAACG7996C


       Appellant by        : Shri K. Madhusudan, Sr. D.R.
       Respondent by       : Shri Sanjay R. Shah

                                (आदे श)/ORDER

Date of hearing              : 25 -07-2017
Date of Pronouncement        : 27-07-2017

PER N.K. BILLAIYA, ACCOUNTANT MEMBER:

1. This appeal by the Revenue is preferred against the order of the Ld. CIT(A)- I, Baroda dated 23.05.2014 pertaining to A.Y. 2006-07.

                                           2     ITA No 2312/Ahd/2014
.                                               A.Y. 2006-07

2. The sum and substance of the grievance of the revenue is that the ld. CIT(A)erred in deleting the addition of Rs. 4.86 crores made in the computation of Book Profit u/s. 115JB of the Act on account of expenditure related to exempt income computed u/s. 14A r.w.r. 8D of the Act.

3. Briefly stated the facts of the case are that the assessment u/s. 143(3) was completed on 26.12.2008 at Rs. 202,70,19,560/- and the Book Profit was computed at Rs. 423,99,08,469/-.

4. Subsequently, the completed assessment was reopened and notice u/s. 148 of the Act was issued and served upon the assessee. The completed assessment was reopened by issuing a show cause notice requesting the assessee to offer their explanation as to why expenditure on exempt income should not be disallowed u/s. 14A of the Act.

5. We find that the reopening of the assessment was challenged before the Tribunal and the Tribunal vide order dated 30.01.2015 in ITA Nos. 2444 & 2445/Ahd/2011 quashed the notice issued u/s. 148 of the Act and decided the issue of reopening in favour of the assessee.

6. Since, the basis of the computation of Book Profit u/s. 115JB of the Act has been removed by the Tribunal by its order (supra), we do not find any merit in this appeal of the revenue.

                                          3         ITA No 2312/Ahd/2014
.                                                  A.Y. 2006-07


7. Appeal filed by the Revenue is dismissed.



           Order pronounced in Open Court on         27 - 07- 2017


           Sd/-                                                         Sd/-
  (S.S. GODARA)                                          (N. K. BILLAIYA)
 JUDICIAL MEMBER True Copy                              ACCOUNTANT MEMBER
Ahmedabad: Dated 27 /07/2017
Rajesh

Copy of the Order forwarded to:-
1.    The Appellant.
2.    The Respondent.
3.    The CIT (Appeals) -
4.    The CIT concerned.
5.    The DR., ITAT, Ahmedabad.
6.    Guard File.
                                                           By ORDER




                                                   Deputy/Asstt.Registrar
                                                     ITAT,Ahmedabad