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2011 (1) TMI 27 - HC - Income TaxRevision u/s 263 - Deduction u/s 32AB - Method of computation - Book profit under schedule VI of the companies act, 1956 or profit and gains of business - Held that: - it is found that the view which was prevalent at the appropriate point in time was that of the Tribunal at Delhi taken in the case of the Assistant Commissioner of Income Tax Vs. Northern India Theatres Pvt. Ltd. and in Indian Transformers Ltd. (1995 -TMI - 62254 - ITAT COCHIN). In terms of these judgments, the income of the assessee, shown in its balance sheet under the head "other income" had not to be excluded for purposes of determining the permissible deduction under section 32 AB of the Act. The notice was issued by the CIT under section 263 of the said Act on 21.02.1994 when, the aforesaid legal position was admittedly enuring for the benefit of the assessee. Therefore, on the date the CIT issued the show cause notice, the legal position which obtained supported the view taken by CIT (A) in its order dated 07.08.1992. In these circumstances, the issuance of show cause notice to the respondent/assessee was uncalled for. - Decided in favor of assessee.
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