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2011 (7) TMI 86 - HC - Income TaxBook profit u/s 115JA - Profit on sale of fixed assets - disallowance u/s 37(4) - It is now a settled law that if a particular income shown in the account of profit and loss is not taxable under the Act, it cannot be taxed on the basis of estoppel or any other equitable doctrine - Tribunal below committed a substantial error of law in treating the amount of ₹ 228.34 lakh as chargeable to Income-tax notwithstanding the fact that the same did not come within the purview of section 28(iiia) of the Act when the license had not been sold and no profit had come in the hand of the appellant - Decided in favour of the assessee A plain reading of the aforesaid provisions makes it abundantly clear that where in the case of an assessee, being a company, the total income, as computed under the Act in respect of any previous year relevant to the assessment year commencing on or after the 1-4-1997 but before the 1-4-2000 is less than thirty per cent of its book profit, the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to thirty per cent of such book profit and in such a case, such assessee shall prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956 - it is absurd to suggest that the profit on sale of fixed assets amounting to ₹ 6,02,91,024 did not form part of the book profit under section 115JA - Decided in favour of the revenue
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