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2012 (7) TMI 17 - HC - Income TaxComputation of book profit - adjustment of the prior period expenses in computing book Profit u/s 115JA - Revenue contending non-deduction of Prior period expenses since the same was not debited in the P & L A/c - Held that:- Whether the prior period expenses were shown separately or not, the assessee would nevertheless be entitled to have the adjustment of the prior period expenses in the matter of computing the net profit of the assessee. Thus on mere fact that the assessee had shown its prior period expenses in the extra ordinary items separately, did not mean the net profit was arrived at de hors these items. In present case, in computing the net profit, assessee had adjusted prior period expenses, rightly, the assessee offered the book profit for assessment. No exception could be taken to the course adopted by the assessee in adjusting the prior period expenses in computing the net profit. Order of tribunal set aside. See CIT v. KHAITAN CHEMICALS AND FERTILIZERS LIMITED (2008 (9) TMI 89 (HC)) - Decided in favor of assessee. Jurisdiction of Officer - Held that:- Once the officer accepts the book profit, he cannot travel beyond what had been disclosed in the book profit.
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