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2010 (1) TMI 28 - HC - Income TaxMAT – minimum alternate tax – Book Profit - . The assessee had filed its return declaring income at nil on 31st October, 2002. Since the income as per the normal provisions of the Income Tax Act (hereinafter referred to as ’the Act’) was computed at a loss of Rs.1,46,90,960/-, the Assessing Officer computed book profit under Section 115JB of the Act at Rs.64,30,227/- - On examination of the assessment records, the Commissioner of Income Tax (CIT) noticed that in the assessment order passed by the Assessing Officer under Section 143(3) an amount of Rs.100 lacs received by the assessee-company from Messer Griesheim Gmbh was not included in the total income as per the provisions of Section 41(1) of the Act. Accordingly, the CIT came to the conclusion that the order passed by the Assessing Officer was erroneous, insofar as, it was prejudicial to the interest of the Revenue. The CIT issued notice under Section 263 of the Act to the assessee. The assessee contended that the said amount of Rs.100 lacs was credited to the profit and loss account, and consequently to the book profit, which was adjusted by the Assessing Officer in the assessment order and, therefore, assessment order cannot be said to be erroneous – ITAT deleted the additions made by the CIT u/s 263 – held that - Since the amount of write back of the loan liability already forms part of book profit on which tax is levied, the Assessment Order cannot be branded as erroneous in so far as it is prejudicial to the interest of revenue – ITAT order confirmed – decided in favor of assessee
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