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2023 (10) TMI 910 - AT - Income TaxMAT applicability on Debenture Redemption Reserve - deduction from the book profits of the appellant company computed as per section 115JB - HELD THAT:- As the assessee has been claiming Rs.100 Cr. as Debenture Redemption Reserve for the purpose of redemption of debenture worth Rs.500 Cr. and after going through the judgment of Srei Infrastructure Finance Ltd. [2015 (2) TMI 545 - DELHI HIGH COURT] wherein in the case National Rayon Corporation [1997 (7) TMI 113 - SUPREME COURT], Vazir Sultan Tobacco Company [1981 (9) TMI 105 - SUPREME COURT], Molasses Storage Fund DCM Ltd. [2004 (10) TMI 578 - DELHI HIGH COURT], Salem Co-operative Sugar Mills Ltd [1996 (9) TMI 40 - MADRAS HIGH COURT], Pandavapura Sahakara Sakkare Kharkane Ltd. [1991 (9) TMI 38 - KARNATAKA HIGH COURT], Somaiya Orgeno-Chemicals Ltd. [1993 (12) TMI 3 - BOMBAY HIGH COURT] we hold that the provisions of Section 115JB(b) are applicable to the facts of the instant case. Addition u/s 41 - irrecoverably written off amount receivables from the assessee - assessee continued to claim the same as sundry creditors in their books of accounts - The facts proves that the assessee is absolved of their liability of Rs.16 .09 lacs and hence, we hold that the ld. CIT(A) has rightly confirmed the addition made by the AO.
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