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2015 (9) TMI 559 - MADRAS HIGH COURTReopening of assessment - escaped income under Section 115JA - assessee had written back depreciation wrongly in their profit and loss account and that therefore the income chargeable to tax had escaped assessment - Tribunal held that books profit is not to be reduced by the excess provisions of depreciation credited in the profit and loss account? - Held that:- The proviso under clause (i) of the Explanation makes it clear that in case where Section 115JA is applicable to an assessee in any previous year, the amount withdrawn from the reserves created or provisions made "in a previous year relevant to the assessment year commencing on or after the first day of April, 1997", shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions out of which the said amount was withdrawn under the Explanation. It is not the case of the assessing officer that the provisions made by the assessee in this case were relatable to a previous year relevant to the assessment year commencing on or after the first day of April, 1997. Pointing out the object behind Section 115JA, it was contended by Mr.J.Narayanasamy, learned standing counsel that by a jugglery of the accounting methods, the assessee cannot always make it a "zero tax" company even while making profits or at least showing profits to certain stakeholders. We appreciate the concern. But the law relating to income tax being what it is, we do not think that the Court is entitled to go in for a purposive interpretation when the plain language of the taxing statute is clear. Explanation (i) is very clear in its purport. The assessee may fall within the ambit of the mischief sought to be undone by Section 115JA. But so long as the express language is in its favour, the mischief or no mischief cannot be cured. - Decided in favour of assessee.
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