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2015 (6) TMI 446 - AT - Income TaxDisallowance of the deduction under section 10B by not allowing the assessee to reduce the expenditure on account of repairs and maintenance which was already debited to the profit and loss account - CIT(A) has allowed the claim of the assessee by accepting the explanation of the assessee that the said amount was not reduced from the profits of the A.Y. 2007-08 and accordingly in the year under consideration it was a rectification - Held that:- An error was committed by the assessee in the books of accounts relevant to the A.Y. 2007-08 by debiting the capital expenditure to the profit & loss account. However, the assessee offered correct income to tax for A.Y. 2007-08. For the year under consideration the assessee has carried out the necessary entries to rectify the said mistake occurred in the financial year 2006-07 by crediting the said amount of ₹ 1,26,46,787/- to the respective expenditures' ledger accounts and correspondingly debiting the fixed capital account. Thus, as a result of the said rectification adjustment made in the books of accounts for the year under consideration the profit of the assessee was increased by the said amount in comparison to the real profit of the year. Therefore, the assessee in computation of income for the assessment year under consideration has deducted the said amount to bring the income at the correct amount. We find that if the income for the year under consideration is not correctly computed in the statement of income it would have resulted in double taxation because the assessee has already added back a sum of ₹ 1,26,46,787/- in the profit & loss account in order to rectify the mistake occurred in the accounts in the earlier year. In view of the above facts and circumstances of the case, we do not find any error or illegality in the impugned order of the Ld. CIT(A) qua this issue. - Decided against revenue.
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