9911796707
TMI Blog2015 (8) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... We heard the parties and perused the record. The assessee company is engaged in the business of manufacture and sale of jewellery. The original assessment for the year under consideration was completed under section 143(3) on 30.10.2009 and it was set aside by the Commissioner of Income Tax under section 263 of the Act. Consequently, the AO passed the impugned assessment order. 3. The first issue relates to the addition made u/s 68 of the Act towards unexplained bank deposits. The AO received AIR information about deposit of Rs. 28.53 lakhs made by the assessee in a bank account maintained with Oriental Bank of Commerce. On examination of the details of cash deposits made, the AO noticed that the assessee has deposited aggregate amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee was having a cash balance of Rs. 16.45 lakhs as on 1.4.2006 and has carried out an average cash balance of about Rs. 19 lakhs from 1.4.2006 to 21.8.2006. The cash balance available as on 21.8.2006 was Rs. 17.56 lakhs. According to the assessee, a sum of Rs. 16 lakhs was deposited into bank account maintained with Oriental Bank of Commerce out of the cash balance available with the assessee in its Cash book. Thus, according to the assessee, the cash book maintained by it sufficiently explains the source of making impugned deposits into bank account. 7. An identical issue was considered by the Co-ordinate Bench of the Mumbai Tribunal in the case of Shri Baburao K.Pisal (supra) and the Tribunal has held as under: "4. After hearin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) on this issue and restore the same to the file of the AO to examine this issue afresh in the light of discussions made supra and take appropriate decision in accordance with the law, after providing necessary opportunity of being heard to the assessee. 9. The next issue relates to the addition of loss arising on sale of house property amounting to Rs. 2.93 crores while computing the book profit under section 115JB of the Act. From the assessment order, we notice that the computation of income initially filed by the assessee was revised by the assessee on noticing certain mistakes. Since computation of income was revised, the AO took the view that there are defects in the books of account and accordingly came to the conclusion that the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed depreciation is lesser: Book profit Rs.20,35,009 Rs.3,60,61,666 Rs.3,60,61,666 Rs.NIL Rs.3,60,61,666 Rs.2,61,93,429 Rs.98,68,237 A careful perusal of the above said workings would show that the assessing officer has proceeded to compute the Book Profit u/s 115JB of the Act against the provisions of the Act. It is well settled proposition that the provision of sec. 115JB is a complete code by itself and hence the book profit should be computed strictly in accordance with the provisions contained therein. The net profit disclosed in the Profit and Loss account prepared in accordance with the Companies Act should be the starting point to which the additions and deductions prescribed in that provision are required to be added and d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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