Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Home Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles News Highlights
Extracts
Home List
← Previous Next →

DCIT, Central Circle-18, New Delhi Versus Brentwoods International Ltd, (formerly known as Orphic Resort Ltd)

2017 (9) TMI 474 - ITAT DELHI

MAT computation - Addition on account of provisions for gratuity and provisions of leave encashment made u/s 115JB to the book profit - Held that:- CIT(A) has deleted the above addition because of the reason that the provision of leave encashment as well as the provision of the gratuity are meant on the actuarial valuation as per the accounting standard 15 of Ministry of Corporate Affairs and both the liabilities are ascertained liability and therefore they cannot be stated to be an understated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y has become sick industrial company under subsection (1) of section 17 of the sick industrial companies (special provisions) act, 1985 and ending with the assessment year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses was required to be reduced from the profit under section hundred and 115JB of the Act. Therefore, apparently, if the assessee’s net worth has become positive during the year then assessee is eligible for the deduction of the pr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with a direction to verify the computation of net worth. - ITA No. 5854/Del/2015 - Dated:- 5-9-2017 - Shri H. S. Sidhu, Judicial Member And Shri Prashant Maharishi, Accountant Member Revenue by : Shri Shravan Gotru, Sr. DR Assessee by : Shri Rakesh Kumar, CA ORDER Per Prashant Maharishi, A. M. 1. This is an appeal filed This appeal is preferred by revenue against the order of the Ld. CIT(A)-27, New Delhi dated 31/08/2015 wherein adjustment made by the Ld. assessing officer to the book profit of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

3/- on account of provisions of leave encashment made u/s 115JB of the Act to the book profit, as they were in the nature of unascertained liabilities. 2. That the Commissioner of Income Tax (Appeals) has erred in law and facts of the case in deleting the addition of ₹ 95827635/- on account of accumulated losses on account of profit of sick industrial company to the book profit u/s 115JB of the Act. 3. The assessee is a limited company who filed its return of income showing Nil income and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

) read with Section 263 of the Act on 06/02/2015 wherein he has made an addition to the book profit of the assessee of provision for gratuity and leave encashment. A further addition of ₹ 95827635/- was also made on account of profit of sick industrial company because of the fact that the said company has positive net worth and its paid-up capital and free reserve are at ₹ 16.30 crores. Since the accumulated losses according to the Ld. Assessing Officer are much less than the paid-up .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

encashment paid under section 115 JB of the Income Tax Act to the book profit by the Ld. Assessing Officer deleted by the Ld. CIT(A). 5. The Ld. departmental representative relied upon the orders of the Ld. AO and Ld. authorised representative relied upon the order of the Ld. CIT(A). 6. We have carefully considered the rival contentions. The Ld. CIT(A) has deleted the above addition because of the reason that the provision of leave encashment as well as the provision of the gratuity are meant o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t of the assessee of ₹ 95827635/-. The Ld. CIT(A) deleted the above addition. For the reason that as on 31/03/2009 the net worth of the company was ₹ 45545258/- and not ₹ 163089419/-. According to the Ld. CIT(A), the net worth of the company turned positive. During the year under consideration after it was already sick therefore it s profit of ₹ 95827635/- shall be reduced under clause (Vii) of the explanation to section hundred and 115JB of the act. 8. Ld. DR relied upon .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Forum
what is new what is new
  ↓     bird's eye view     ↓  


|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version