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2012 (6) TMI 569 - AT - Income TaxAdding back of interest waiver to the book profit u/s. 115JB - CIT invoked the provisions of section 263 - assessee contention that the amount withdrawn from a reserve or provision has to be considered for book profit if it is allowed as deduction in earlier years - Held that:- The amount withdrawn from reserve or provision i.e., waiver of interest cannot be considered as part of book profit since it was never allowed in the computation of book profit of the company in any of the earlier years since the company never had any book profit being sick industrial undertaking as decided in Narayanan Chettiar Industries vs. ITO [2005 (7) TMI 71 (HC)]- the provision for interest was made in earlier year as interest payable was added back to the income of the assessee as the liability was not paid while computing the regular income of the assessee - the Assessing Officer having computed the income of the assessee in accordance with the normal provisions of the Act, thus cannot hold that the assessment order passed is erroneous so far as prejudicial to the interest of revenue - in favour of assessee.
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