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2011 (3) TMI 547 - AT - Income TaxAddition u/s 115JB - MAT - Revised return - Assessing Officer was of the view that the profit of the assessee should be taken as Rs. 1,12,38,786 for the purposes of section 115JB, as he did not accept the claim of "Net Prior period credits/charges" - It was submitted that the profit amount represents additional purchase cost of power - It was argued that after considering the cost of purchase of power by the APTRANSCO at the balancing amount of Rs. 1002,45,95,693 the income of the appellant company has been adopted at Nil - the prior period as per accounts in the case of appellant company relates to the pre-incorporation period during which neither the appellant company was in existence nor carried out any operations - it is noticed that the assessee has taken different types of stands in respect of claim of Rs. 1,12,38,786 under the head "Net prior period credits/charges - Another claim of the assessee is that the said amount is to be treated as "Additional purchase cost", but the said claim goes against the entries passed in the books of account, i.e. in the books it was claimed as "Net prior period charges/credits Regarding provision of terminal benefit - It is not in dispute that, in the instant case, the impugned amount of Rs. 9.08 crores has been appropriated towards the terminal benefits of the employees of the assessee company viz., graturity and pension payable, on the basis of actuarial valuation - In the instant case, though the amount provided for the terminal benefits has been transferred to a "Reserve Fund", in our view, the amount so provided relates to a provision only - Since the said provisions falls in the category of "Ascertained liability", the same is allowable while computing the book profit under section 115JB.
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