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2019 (6) TMI 1214 - AT - Income TaxRectification u/s 154 for recomputing book profit u/s 115JB - book profit computed on the basis of return filed by the assessee voluntarily u/s 153A - for computation of book profits assessee make adjustment in sale and reduced the profit - HELD THAT:- No cogent explanation was given by the assessee in the course of the assessment proceedings as regards as the quantum of purchase - sale figure which was rectified and the decrease in sale from 149% of purchase to 127% of purchase. The order of the CIT(A) is completely silent on this issue. CIT(A) also didn't elucidate as to how the book profit was correctly computed at ₹ 9,29,04,504/- in the order dt.26.12.2012 u/s.251/153A/143(3) of the Act. We note that provision of section 115JB is a code itself and hence whatever mentioned in the section should be followed to compute book profit. We are of the view that the Assessing Officer should examine what is additions or deductions in the book profit as computed by assessee company as per the provisions of Companies Act. Provisions relating to adjustments by way of increase and decrease to the net profit shown by the assessee in profit and loss account are very explicit in section 115JB. The items which are to be added to the net profit have been listed out in Explanation 1 to that section. A.O./CIT(A) should adhere to that list and cannot travel beyond these items. The provisions of section 115JB do not leave any room for adjustment by the AO other than those mentioned in Explanation 1 to Section 115JB to the net profit reflected in the accounts of any assessee. We note that neither AO nor ld. CIT(A) explained the provision of section 115JB in relation to computation of book profit. Under the circumstances, we set aside the order of ld. CIT(A) and remit the issue back to the file of A.O. with the direction to compute the book profit as per the provisions of section 115JB - Appeals of the revenue are allowed for statistical purposes.
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