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2017 (7) TMI 1375 - AT - Income TaxRectification u/s 154 - seeking to assess the book profit of the assessee at the ‘correct’ figure - HELD THAT:- Only thing that needs to be seen in this regard is if the company, in reducing the profit on the sale of shares, has followed any of the specified adjustments under Explanation 1 to s. 115JB. We find that none of the specified adjustments correspond to the said adjustment, made by the assessee to the net profit per the revised return, and neither has the assessee stated any at any stage. This, rather, raises a question on the validity of the said revision, which u/s. 139(5) could only be rectify an omission or wrong statement in the original return, so that it is incumbent on the assessee to state what omission or wrong statement informs its revision, i.e., its’ basis, and which it has abysmally failed to. Continuing further, capital gains on transactions in securities has been specified for reduction (from net profit) only in the case of a foreign company (Cl. (iid) to Explanation 1, inserted w.e.f. 01/4/2016). The same by itself implies, i.e., if there were to be any doubt whatsoever in the matter, that the capital gains for an assessee, not being a foreign company, being not specifically provided, is not to be reduced (from the net profit) in arriving at the book profit. Thus, even if the shares sold are held as a capital asset – which does not appear to be the case on the basis of the assessment order, so that the surplus on their sale is a capital gain to the assessee, the profit on the said sale cannot be reduced. We accordingly have no hesitation in confirming the impugned order and, thereby, the rectification by the AO.
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