Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1480 - HC - Income TaxCapital receipt or revenue receipt - assessee is not entitled for the benefit u/s 115JB that appeal deserves to be allowed - Held that:- Oberoi Hotel (P) Ltd. vs. Commissioner of Income Tax [1999 (3) TMI 2 - SUPREME COURT] as principles laid down as per Article XVIII of the Principal Agreement, the amount received by the assessee is for the consideration for giving up his right to purchase and or to operate the property or for getting it on lease before it is transferred or let out to other persons. It is not for settlement of rights under trading contract, but the injury is inflicted on the capital asset of the assessee and giving up the contractual right on the basis of Principal Agreement has resulted in loss of source of assessee's income. As decided in Rajasthan Spinning & Weaving Mills vs. Deputy Commissioner of Income Tax [2005 (7) TMI 39 - RAJASTHAN HIGH COURT] the acceptance by the shareholders and statutory authorities to be the result of company's affairs. Such accepted book profit has to be accepted by AO to find whether income computed by him in accordance with IT Act is more than or less than such admitted income. It is only if as a result of company's total taxable income in accordance with IT Act by the AO, it is found to be less than 30 per cent of admitted book profits as discussed above, that resort has to be had to Section 115J and not otherwise. If the computation in accordance with provisions of IT Act gives better tax results, it is not at all required to go to Section 115J. The CIT has obviously exceeded its jurisdiction to find the order of AO to be erroneous, not on the basis of declared book profit, but on the basis of book profit computed by him and the Tribunal too fell in like error in accepting the position. - Decided in favour of the assessee
|