TMI Blog2013 (12) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... or excluded form book profits - Held that:- Following Sulzer India Ltd. [2010 (11) TMI 728 - ITAT, MUMBAI] - Amount paid by the eligible unit as per the formula on the NPV made by SICOM Ltd. and if the assessee get the benefit, the said benefit is in the nature of the capital receipt - this issue in respect of the computation of the book profit u/s. 115JB of the Act has to be decided against the assessee - Decided in favor of revenue. - ITA No.1279/PN/2012 - - - Dated:- 26-8-2013 - G. S. PANNU AND R.S. PADVEKAR , JJ. For the Appellant : Adarsh Kumar Modi. For the Respondent : R.D. Onkar. ORDER:- PER : R.S. Padvekar This appeal has been filed by the revenue challenging the impugned order of the Ld. CIT(A)-V, Pune 30-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e benefit of sales tax scheme of the SICOM Ltd. and prepaid a part of the said liability at it's net present value (NPV), consequent to which gain of Rs.36,57,30,272/- has accrued to the assessee company which has been credited to the profit and loss account and the assessee has not included said amount in the computation of total income. As the provisions of Sec. 115JB of the Income-tax Act are applicable, the Assessing Officer worked out the book profit which working is given in Annexure-B to the assessment order. The Assessing Officer did not exclude the amount of Rs.36,57,30,272/- which has been credited to the profit and loss account and also is a part of (sic) rejecting the claim of the assessee that the said amount is to be excluded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee over the period of deferral i.e. for 10 years repayable thereafter over further period of 5 years in 5 equal installments. The Govt. of Maharashtra amended Sec. 38 of Bombay Sales Tax Act and it was provided that the prepayment of the deferred sales tax liability was allowable at net present value (NPV). The eligible units under the scheme availing the deferral sales tax liability is the same can be done on payment of prescribed NPV of the liability even before the commencement of scheduled period of repayment. The assessee, therefore, opted for repayment of the sales tax liability before the commencement of the scheduled repayment period on the NPV. The total sales tax collected by the assessee for the Chakan and Satara underta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the nature of the capital receipt. In our opinion this issue in respect of the computation of the book profit u/s. 115JB of the Act has to be decided against the assessee, by following decision of the Special Bench of the Tribunal in the case of Rain Commodities Ltd. v. Dy. CIT [2010] 40 SOT 265 (Hyd.). We, accordingly, answer the Ground No. 1 against the revenue and Ground No. 2 in favour of the revenue. We, therefore, reverse the order of the CIT(A) by holding that while computing the book profit u/s. 115JB the amount to the extent of the Rs.36,57,30,272/- cannot be excluded by applying Clause-(viii) in II Part to Explanation-1 below Sec. 115JB (2). 7. In the result, the revenue's appeal is partly allowed. Pronounced in the open C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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