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2021 (3) TMI 743 - HC - Income TaxMAT Computation - Addition of prior period expenses in computing book profits - HELD THAT:- If this amount was not required to be part of Profit & Loss Account prepared as per Schedule VI of the Companies Act, then undisputedly this amount not being part of any of the clauses of Explanation to Section 115JB cannot be excluded from net profit for the purposes of computing book profit u/s 115JB. Since, neither the revenue nor the assessee has furnished any record in support of their respective claims, whether this amount of prior period expenditure was required to be part of profit and loss account prepared as per provisions of Schedule VI of the Companies Act, therefore, in the facts and circumstances of the case, we set aside this issue to the record of the CIT(A) to re examine the issue light of the relevant provisions of Schedule VI of the Companies Act as well as the relevant accounting standard applicable on this item of expenditure and then give a finding whether this amount of prior period expenditure is required to be part of profit and loss account or not. It is evident that while passing the order, the tribunal has not adverted to the reasoning assigned by the Commissioner of Income Tax (Appeals). Therefore, we answer the second substantial question of law in favour of the assessee and against the revenue. In the result, the impugned order passed by the tribunal dated 29.12.2015 is quashed. We may clarify that decision of this court in CIT VS. GMR INDUSTRIES LTD [2020 (3) TMI 286 - KARNATAKA HIGH COURT] was rendered in the peculiar facts of that case. Needless to state that it will be open for the parties to raise all contentions as are admissible to them in law.
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