TMI Blog2013 (1) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... e different because agreed addition before the A.O. is a part and parcel of net profit as shown by the assessee in Profit & Loss Account and, therefore, this is not a part of adjustment. There is no restriction in calculating correct net profit as per Profit & Loss account which includes agreed addition where assessee stated having no business relationship with those persons and as was pre occupied by some personal work was unable to produce persons & in order to buy peace of mind and having assurance not to impose penalty, offer the amount which he has received from those persons be treated as their income. Thus when the net profit of the assessee is the net profit shown in the Profit & Loss account plus agreed addition, that will be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er :- 4. The brief facts of the case are that during the assessment proceedings the A.O. noticed that the assessee firm is engaged in the business of construction work. During the year under consideration, the assessee taken loan in cash and subsequently the same was repaid in cash and the accounts were squired up. These accounts are 10 in number totaling to Rs. 3,70,000/-. The A.O. vide order sheet entry dated 12.10.2010 asked the assessee to finish details of these loans and advances. The assessee vide letter dated 18.10.2010 submitted as under, which is reproduced from A.O.'s order. "That the assessee has already submitted addresses of persons from whom business advances were received. Since at present the assessee don't have any bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee's contention and held that the A.O. has rightly made addition of Rs.3,70,000/- while calculating the book profit under section 115JB of the Act. In written submission the assessee reiterated what he has submitted before the CIT(A). The contention of the assessee that the A.O. is not authorized to make adjustment in book profit for the purpose of calculation under section 115 JB except adjustment provided in the said section. The assessee relied upon the judgement of Apex Court in the case of Apollo Tyres Ltd. v. CIT [2002] 255 ITR 273 and others. 7. The ld. Departmental Representative relied upon the order of CIT(A). 8. The assessee did not make any specific submission in respect of ground no.1, order passed under section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... profit as per the Profit Loss account shown by the assessee. The contention of the assessee that only specified adjustment is required to be made. In principle, we agree with the assessee that for the purpose of calculation under section 115JB only specified adjustment is required to be made. But the facts of the case under consideration are different because agreed addition before the A.O. is a part and parcel of net profit as shown by the assessee in Profit Loss Account and, therefore, this is not a part of adjustment. There is no restriction in calculating correct net profit as per Profit Loss account which includes agreed addition as discussed above. We notice that when the net profit of the assessee is the net profit shown in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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