TMI Blog2010 (10) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... ccounts have been maintained in accordance with the provisions of Parts-II and III of the Schedule VI to the Companies Act, 1956, except those mentioned in said Section - the right to touch book-profit by the Assessing Officer in relation to Section 115J is identical to 3 such right in relation to Section 115JA and the same is governed by the law declared by the Hon'ble Supreme Court in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, however, was not reduced by such liability, inasmuch as, in fact the liability was not discharged by the assessee. During the relevant year, the Financial Corporation waived liability of the assessee on account of such interest to certain extent. The Assessing Officer purported to add the same to the book-profit of the assessee, while exercising powers under Section 115JA of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including credits or receipts and debts or expenses in respect of non-recurring transactions or transactions of an exceptional nature. In the instant case, the liability on account of interest though accrued was not met and the same was, accordingly, reflected in the Accounts year after year. Admittedly, yearly profits of the assessee were not reduced by the quantum of yearly liabilities accrued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be added. Admittedly, the matter dealt with herein is not one of those which are to be added to book-profit under Section 115JA. Taking note of the said judgment of the Hon'ble Supreme Court and applying the principles laid down therein, the Tribunal held that while dealing with a matter under Section 115JA also, the Assessing Officer has no authority to add anything to book-profit in the event ..... X X X X Extracts X X X X X X X X Extracts X X X X
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