Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 1340 - HC - Income TaxRevised return - Income escaping assessment - Assessee not computed its income u/s 115JA - Held that:- The finding of the AO is that as per Section 115JA, the assessee did not have any business loss or unabsorbed depreciation to be carried out to Assessment Year 1998-99. Further, the assessee has claimed that an accumulated royalty which was debited in the P & L account for the Assessment Years 1991-92 to 1997-98 was written back to the P & L Account for this assessment year since the royalty was waived by their Collaborator M/s. Kone OY Finland. The assessee considered this royalty written back in the 'P & L Account Appropriation Account', instead of crediting the same in the P & L Account. Since the royalty had been debited to P & L Account from the accounting year ending 31.3.1991 onwards, the waiver of royalty is clearly a taxable income and has to be treated as income and the book profit u/s. 115JA of the Act has to be arrived at accordingly - there was a reason to believe that the income assessable to tax has escaped assessment - Decided against the assessee
|