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2023 (2) TMI 562 - AT - Income TaxMAT computation - Disallowance of Debenture Redemption Reserve[DRR] while computing Book Profit u/s 115JB - Whether the said DRR is ascertained liability - Whether computation of book profits by the Appellant is not as per the provisions of Section 115JB as the reduction of Net Profits by the Debenture Redemption Reserve is not one of the prescribed adjustments and therefore not permissible? - CIT-A confirming the disallowance - HELD THAT:- As in the facts of the present case it is not the Assessing Officer who has ‘increased’ the amount of Net Profits, on the contrary it is the Appellant who had ‘reduced’ the Net Profits as shown in the audited Profit & Loss Account prepared as per the provisions of the Companies Act by the amount of Debenture Redemption Reserve created during the relevant previous year. Even if the Debenture Redemption Reserve is taken to be in the nature of a provision, the action of the Appellant was contrary to the law laid down by the Hon’ble Supreme Court in the case of Apollo Tyres Ltd [2002 (5) TMI 5 - SUPREME COURT] whereas the orders passed by the authorities below are in conformity with the aforesaid judgment of the Hon’ble Supreme Court. Thus, we do not find any infirmity in the order passed by the CIT(A) which deserves to be upheld on this ground alone though the CIT(A) has given further reasoning in support of his decision to confirm the order passed by the Assessing Officer. The Appellant has failed to controvert the above findings/observations of the CIT(A) which are also in conformity with the decision of the Bangalore Bench of the Tribunal in the case of D.R. Ranka Charitable Trust v. Director of Income-tax (Exemptions) [2010 (2) TMI 983 - ITAT BANGALORE In the result, the present appeal is dismissed.
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