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2011 (3) TMI 1450 - HC - Income TaxMAT - Rectification of mistake - Deduction of prior period items from book profit - section 115JA - Assessing Officer noticed that the profit and loss account prepared by the assessee under Parts II and III of Schedule VI to the Companies Act disclosed a profit of Rs. 1,01,37,664, wherefrom the assessee had made a deduction of Rs. 23,29,726 towards prior period expenses which is impermissible under the statute and this mistake was rectified in proceedings initiated under section 154 of the Act by disallowing deduction claimed by the assessee from the profit available under the profit and loss account - Held that:- Assessing Officer has to start assessment by adopting the profit available in the profit and loss account prepared in terms of Parts II and III of Schedule VI to the Companies Act. - If the assessee has made a claim of deduction from this profit not enumerated in clauses (i) to (ix) covered by the Explanation to section 115JA, the assessment so completed based on the profit taken from the profit and loss appropriation account submitted by the assessee happens to be an apparent mistake which could be rectified in proceedings to be initiated under section 154, appeal dismissed
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