TMI Blog2004 (9) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, right in holding that the amount transferred from the revaluation reserve could not be deducted out of the net profit while computing the book profits for the purpose of section 115J - Resultantly, the assessee’s appeal being without any merit is dismissed in limine. - - - - - Dated:- 9-9-2004 - Judge(s) : N. K. SUD. JUDGMENT The judgment of the court was delivered by N.K. SUD J. - The assessee has filed this appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), against the order of the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short "the Tribunal"), dated December 30, 2003, pertaining to the assessment year 1990-91. The assessee had filed its return of income on December 28,1990 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the purpose of section 115J of the Act. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals), Bathinda, who vide his order dated November 19, 1996, accepted the claim of the assessee and held that since the revaluation reserve did not represent the real income, any amount transferred from such fictitious income could not form part of the book profits of the company. Against the order of the Commissioner of Income-tax (Appeals), the Revenue filed an appeal before the Tribunal. The Tribunal has upheld the plea of the Revenue that in view of the clear provisions of the proviso to clause (i) of the Explanation to section 115J(1A) of the Act, the amount transferred from the revaluation reserve could not be r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount withdrawn from reserves (other than the reserves specified in section 80HHD) or provisions, if any such amount is credited to the profit and loss account: Provided that, where this section is applicable to an assessee in any previous year (including the relevant previous year), the amount withdrawn from reserves created or provisions made in a previous year relevant to the assessment year commencing on or after the 1st day of April, 1988, shall not be reduced from the book profit unless the book profit of such year has been increased by those reserves or provisions (out of which the said amount was withdrawn) under this Explanation, or" The aforesaid proviso was inserted by the Finance Act, 1989, with retrospective effect from Apri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted power of making increases and reductions as provided for in the Explanation to section 115J(1A) of the Act. The Assessing Officer does not have the jurisdiction to go behind the profits shown in the profit and loss account except to the extent provided for in the Explanation. In the present case, the Assessing Officer has not doubted the correctness of any of the entries in the profit and loss account nor has attempted to go behind the net profit shown in the account. All that he has done is that he has made the adjustment in the net profit in accordance with clause (i) of the Explanation to section 115J(1A) of the Act. Such a power, even as per the Supreme Court, the Assessing Officer has. In view of the above, we are satisfied that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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