Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 632 - HC - Income TaxAddition of provision made for NPAs u/s 36(viia) - Whether the Tribunal was justified in holding that the provision made for Non-Performing Assets (NPAs) u/s 36(viia) cannot be added back to the net profit as shown in the profit and loss account prepared u/s 115JB (2) - Held that:- In M/s. Trent Ltd. [2014 (12) TMI 631 - BOMBAY HIGH COURT] the same question of law admitted for adjudication - The Tribunal was rightly of the view that section 263 could not have been invoked by the Commissioner in respect of depreciation of investment and to the extent of ₹ 81.32 crores, that amount has already been added back to the assessee's income and by giving the effect to the Appellate order - the claim of the Department that section 115JB applies also to Dena Bank, which may be a banking company, cannot be prima facie straightway accepted – after the perusal of sub-section (2)(b) of section 115JB of the Income Tax Act, 1961 and sub-section (2) of section 211 of the Companies Act, 1956, it is extremely doubtful as to why these powers under section 263 of the Income Tax Act, 1961 have been invoked by the Commissioner – the view taken by the Tribunal is upheld and as such the question raised cannot be termed as substantial question of law – Decided against revenue.
|