Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 576 - AT - Income TaxMAT calculation u/s 115JB - revaluation reserve - whether any taxable income arising on account of revaluation, no adjustment could be made to the profit and loss account for the purpose of “book profits” u/s 115JB - Held that:- At the initial stage, the arguments of the Ld AR that the only real gains and only realized gains can be considered for the purpose of taxation seems to be attractive, but the same cannot be accepted in the light of the totality of the facts listed hereinabove and in the light of the detailed order of Ld CIT(A) and more so when the assessee in the garb of issue of bonus shares has distributed the unrelaised gains. Further, before us Assessee has also not placed any material on record to demonstrate that the finding of the Ld CIT(A) are factually incorrect with respect to Assessee’s going ahead with the passing of resolution for issue of bonus shares even before the receipt of the report of Chartered Accountant, which the basis of the revaluation, issuance of bonus shares to its shareholders even though it was not permissible as per the Guidance note issued by the Institute of Chartered Accountants of India and the Circular issued by Department of Company affairs, Ministry of Law, Justice and Company affairs. Further, it is also not the case of the assessee that the revaluation reserve which has been created is not a mere book adjustment entry but on the contrary has resulted into actual cash inflow and that it represents realized gains. Before us, in support of its claim, Ld AR had relied on various decisions but however we find that the ratio of decisions relied upon by the assessee in its support are not applicable to the present facts of the case because in none of the cases relied upon by the Ld AR, the revaluation reserve was used for the purpose of issuing bonus shares. In view of the aforesaid facts, we find no reason to interfere with the order of Ld CIT(A) and we therefore dismiss the ground of Assessee.
|