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2013 (1) TMI 114 - AT - Income TaxAddition of business advances to the book profit for the calculation of MAT u/s 115JB - assessee contested as nothing can be added to book profit to calculate MAT except those items which are mentioned in clauses (a) to (g) of explanation (1) of section 115JB - Held that:- The net profit after making addition comes to Rs. 18,80,627/- (15,10,627 + 3,70,000(loans & advances). This amount of Rs. 18,80,627/- is required to be considered as net profit as per the Profit & Loss account shown by the assessee. Contention of the assessee that only specified adjustment is required to be made is agreeable but the facts of the case under consideration are different because agreed addition before the A.O. is a part and parcel of net profit as shown by the assessee in Profit & Loss Account and, therefore, this is not a part of adjustment. There is no restriction in calculating correct net profit as per Profit & Loss account which includes agreed addition where assessee stated having no business relationship with those persons and as was pre occupied by some personal work was unable to produce persons & in order to buy peace of mind and having assurance not to impose penalty, offer the amount which he has received from those persons be treated as their income. Thus when the net profit of the assessee is the net profit shown in the Profit & Loss account plus agreed addition, that will be the net profit as per the assessee and in the light of the fact, that the A.O. did not make any extra adjustment. The AO has made correct net profit accepted by the assessee therefore no infirmity neither in the order of A.O. nor in the order of CIT(A) - against assessee.
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