TMI Blog2015 (8) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... order of ld. CIT(A) 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. - Decided in favour of assessee for statistical purposes. Computing book profit under section 115JB of the Act by adding Capital loss - Held 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961 (the Act); b) Computing book profit under section 115JB of the Act by adding Capital loss. 2. 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 ₹ 28.53 lakhs made by the assessee in a bank account maintained with Oriental Bank of Commerce. On ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er book, the assessee has furnished relevant extract of cash book showing the deposits and withdrawals. According to the said workings, the assessee was having a cash balance of ₹ 16.45 lakhs as on 1.4.2006 and has carried out an average cash balance of about ₹ 19 lakhs from 1.4.2006 to 21.8.2006. The cash balance available as on 21.8.2006 was ₹ 17.56 lakhs. According to the assessee, a sum of ₹ 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is issue requires consideration de nova by considering the books of accounts and explanations of the assessee. Accordingly, we set aside the order of ld. CIT(A) 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 ₹ 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 mist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less : Set-off business loss claimed Assessed total income Book profit of the company as per above working [As per record following unabsorbed depreciation and carry forward business loss available] Unabsorbed depreciation ₹ 2,61,93,429 Unabsorbed loss ₹ 9,17,67,983 Less : The unabsorbed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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