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2016 (6) TMI 642

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..... on of law would arise on such aspect as sought to be canvassed. Same is the situation for the other two items, one for prior period expenditure and another for Security Transaction Tax, but on a different scrutiny that such amounts were already excluded for the purpose of computation of book profit at the time when the assessment order under Sec. 143 was passed. Thereafter, in the purported exercise of power under Sec. 154, such could not be upset. After hearing him at length, we do not find that such would fall in the arena of mistake on the face of record within the scope and ambit of Sec. 154 of the Act, which is limited to rectification of the mistake or error. When the initial order of rectification is found to be beyond the scope o .....

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..... he Tribunal in the impugned order is at paras 4 to 7 which reads a s under: 4.The learned CIT (A) has excluded the Fringe Benefit Tax (FBT) included by the Assessing Officer in the book profit. According to the CIT (A), the Board has issued a circular No.8/2005 dated 29.08.2005 wherein it was explained that for the purpose of computing the income under the head profits and gains of profession , the FBT would not be claimed as deduction because it is an expenditure laid out extending wholly and exclusively for the purpose of business or profession of the employer. Section 40(a)(ic) specifically prohibit the claim of its deduction for the purpose of computing the income under the regular provisions. However, for the purpose of sec .....

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..... ITD 51 which is based on the judgment of the Hon ble Supreme Court in the case of Apollo Tyres Ltd, 254 ITR 273 . For the purpose of section 115JB, the book profit is the profit disclosed as per P L a/c prepared in accordance with the provisions of Part-II and Part-III of Schedule VI of the Company s Act, 1956, laid before the company in its AGM. The adjustment to that profit can only be made qua, the items provided in Explanation-1 to section 115JB i.e. a to f. On perusal of clause a to f, under explanation-1, we find that no adjustment on account of prior period expenses is to be made. The Hon ble Supreme Court in the case of Apollo Tyres has observed that except the adjustment provided in Explanation-1 to section 115JB (2), the A .....

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..... see that any substantial question of law would arise on such aspect as sought to be canvassed. Same is the situation for the other two items, one for prior period expenditure and another for Security Transaction Ta x, but on a different scrutiny that such amounts were already excluded for the purpose of computation of book profit at the time when the assessment order under Sec. 143 was passed. Thereafter, in the purported exercise of power under Sec. 154, such could not be upset. 4. However, Mr. Aravind, the learned Counsel appearing for the appellants Revenue contended that only one view was possible and no deliberation was required to disallow the amount under the head of prior period expenditure and Security Transaction Tax. 5. A .....

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