| COURT: | ITAT Kolkata |
| CORAM: | M. Balganesh (AM), N. V. Vasudevan (JM) |
| SECTION(S): | 115JB, 14A |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Book Profits, Disallowance u/s 14A & Rule 8D |
| COUNSEL: | V. K. Beswal, Vijay Mehta |
| DATE: | March 2, 2016 (Date of pronouncement) |
| DATE: | March 25, 2016 (Date of publication) |
| AY: | 2009-10 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 14A/ 115JB: (i) Investments in subsidiary companies are strategic investments to whom s. 14A disallowance does not apply (ii) Receipt on forfeiture of share warrants is a capital receipt and has to be excluded from "Book Profits" even if credited to the P&L A/c | |
The assessee has duly disclosed the fact of forfeiture of share warrants amounting to Rs. 12,65,75,000/- in its notes on accounts vide Note No. 6 to Schedule 11 of Financial Statements for the year ended 31.3.2009. Hence following the decision of the Mumbai Tribunal in Shivalik Venture (P) Ltd vs. DCIT (2015) 173 TTJ (Mumbai) 238, the profit and loss account prepared in accordance with Part II and III of Schedule VI of Companies Act 1956, includes notes on accounts thereon and accordingly in order to determine the real profit of the assessee
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