Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 716 - AT - Income TaxMAT computation u/s 115JB - claim the deduction in respect of provision made for payment of Excise duty in the relevant year - whether P& L account prepared are in accordance with provision of part II & III of Schedule VI of Companies Act.? - HELD THAT:- The accounts of the assessee are audited under the Companies Act, 1956 and, in terms of Auditor’s Report, statement of Profit & Loss Account complied with the Accounting Standards in terms of section 211(3C) of the said Act and the same give true and fair view of book profit which are prepared as per Schedule VI of the Companies Act. The prior period expenses/liabilities have been provided on the basis of the direction of the Hon’ble Supreme Court since this provision has been made after the order dated 18th October, 2011 of the Hon’ble Supreme Court. We find, a somewhat identical issue had come up before the Hon’ble Allahabad High Court in the case of CIT, Kanpur vs. J.K. Synthetics Ltd.,[1982 (11) TMI 35 - ALLAHABAD HIGH COURT] wherein held that assessee was entitled to claim the deduction in respect of provision made for payment of Excise duty in the relevant year in as much as the Excise Department had gone up in appeal to the Supreme Court and questioned the correctness of the decision of the High Court. As view has been taken in the various decisions relied on by the ld. Counsel that prior period expenses/liabilities are to be adjusted in computing the net profit u/s 115JB of the IT Act. Since the assessee in the instant case has prepared its Profit & Loss Account after providing for liability of Excise Department, administrative charges on molasses, as per the directions of the Hon’ble Supreme Court, therefore, we are of the considered opinion that there is no mistake in the accounts of the assessee and the lower authorities are not justified in rejecting the book profit as per the accounts maintained in terms of Part II and III of Schedule VI of the Companies Act, 1956 as certified by the Accountant and, thereby, recomputing the book profit in terms of section 115JB.- Decided in favour of assessee.
|