*1* itxa.816.12.8 kps IN HIGH COURT OF JUDICATURE AT BOMBAY rt ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.816 OF 2012 ou Commissioner of Income Tax. ..Appellant Versus M/s National Commodity and Derivatives C Exchange Limited. ..Respondent ........... h Mr.Tejveer Singh, for Appellant. Mr.Nitesh Joshi with Ms.Pratiksha Mody i/by K.Ashar & Company, for ig Respondent. ........... H CORAM: S.C. DHARMADHIKARI AND A.K. MENON, JJ. DATE : 12th September, 2014 y ba P.C.: 1 This Appeal of Revenue questions order of Income Tax Appellate Tribunal dated 26.08.2011 in Income Tax Appeal om No.2923/Mum/2010. Assessment Year is 2006 2007. 2 Respondent/ Assessee earned dividend income of Rs.2,83,48,515/ from various mutual funds and which is exempted under B provisions of Section 10(35) of Income Tax Act, 1961. However, Assessing Officer called upon Assessee to explain why Section 14A of Income Tax Act, 1961 r/w Rule 8D of Rules be not applied for disallowance of income. 3 Assessee offered explanation yet this sum/ claim was disallowed and by relying on these provisions. ::: Downloaded on - 11/08/2015 13:44:50 ::: *2* itxa.816.12.8 4 Both sides concede before us that there is judgment in field, namely, of this Court in case of Godrej & Boyce Manufacturing rt Company Private Limited v/s Deputy Commissioner of Income Tax reported ou in (2010) 328 ITR 81 (Bom.). Both sides, therefore, agreed that questions (i) and (ii) would not survive and no longer be termed as substantial questions of law. C 5 On question (iii), Mr.Tejveer Singh has invited our attention to Tribunal's finding and he would submit that this is substantial question of law. He invites our attention to paragraph 14 of h order under challenge to urge that conclusion of Tribunal that ig Section 14A cannot be imported in computation of book profit under Section 115JB of Income Tax Act, 1961, raises substantial question H of law. reference to clause (f) of Explanation 1 of Section 115JB and reliance on judgment of Tribunal's Delhi Bench in Goetze (India) Limited v/s Commissioner of Income Tax reported in (2009) 32 SOT 101 y (Del), enables this Court to admit this Appeal on this question. ba 6 Mr.Joshi, learned counsel appearing for Assessee, would submit that this question was purely academic. question was raised by Assessee before Tribunal in form of ground, but factual om position that emerges from Assessing Officer's order and at page 17 of paper book is that computation of book profit under Section 115JB as indicated and thereafter, tax payable on income under this B section/ provision is less than tax payable under normal provisions of Income Tax Act, 1961. Therefore, he held that provisions of Section 115JB are not applicable. With this factual position matter was carried in appeal and what is pressed is first question which we have dealt above. 7 We have with assistance of learned counsel perused that part of order where question (iii) as raised in this appeal is ::: Downloaded on - 11/08/2015 13:44:50 ::: *3* itxa.816.12.8 dealt with. We find some substance in contention of Mr.Joshi that issue is purely academic. We have perused computation at pages 17 rt and 18 and we are satisfied that Assessing Officer has made ou computation on footing that if earlier exercise is sustained, then, there is no need to go into other aspects. Tribunal despite this factual position and emerging from record decided to take up this question C and rendered finding thereon. In light of tax burden and which is not substantial one, we decline to go into this question though persuaded by Mr.Tejveer Singh. We are of opinion that with h clarification that findings of Tribunal shall not preclude ig Revenue from raising appropriate pleas with regard to applicability of Section 115JB of Income Tax Act, 1961 and in appropriate case H that we dismiss this Appeal. We hold that discussion on this aspect is purely academic. Appeal is dismissed with this clarification as it does not raise any substantial question of law. There is no order as to costs. y ba (A.K. MENON, J.) (S.C. DHARMADHIKARI, J.) om B ::: Downloaded on - 11/08/2015 13:44:50 ::: The Commissioner of Income-tax v. M/s National Commodity and Derivatives Exchange Limited