TMI Blog2019 (10) TMI 1376X X X X Extracts X X X X X X X X Extracts X X X X ..... e, we hereby quash the order passed by the Ld.Pr. CIT U/s.263 - Decided in favour of assessee. - ITA No.987/Hyd/2018 - - - Dated:- 30-10-2019 - Smt. P. Madhavi Devi, Judicial Member And Shri A. Mohan Alankamony, Accountant Member Assessee by: Sri Sharath Rao Revenue by: Smt. Nivedita Biswas-DR ORDER A. Mohan Alankamony, This appeal is filed by the assessee against the order of the Ld. Pr. CIT-4, Hyderabad dated 27/02/2018 passed U/s. 263 of the Act for the Asst. Year 2012-13. 2. The assessee has raised several grounds in its appeal however, the crux of the issue is that the Ld. CIT (A) has erred by invoking his powers U/s. section 263 of the Act on the ground that the order passed by the Ld. AO is preju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch of the Chennai Bench of the Tribunal in the case of Beach Minerals Company (P) Ltd vs. ACIT reported in [2015] 64 taxmann.com 218 (Chennai Trib.) order dated 06th August, 2015 wherein similar view was taken on the issue. The ld. DR could not controvert to the submission of the Ld. AR however argued in support of the order of the Ld. Pr. CIT. 5. We have heard the rival submissions and carefully perused the materials on record. We find merit in the submissions of the Ld. AR because it is a well settled principle that while interpreting fiscal statutes a provision with fiction cannot be superimposed on another provision with fiction. Further, as pointed out by the Ld. AR, the issue was decided in favour of the assessee by the co-ordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT Mumbai in the case of RBK Share Broking P. Ltd. in ITA No. 6678 7546/Mum/2011 dated 24.7.2013 wherein it was held that the amount disallowable U/s. 14A can be added back while computing book profit under Explanation-1 to s. 115JB(para 6). Respectfully following the above decisions, I uphold the addition made by the Assessing Officer. This ground is dismissed. However, on perusing the Explanation-1(f) of Section-115JB(2) of the Act, we do not find merit in the contention of the Ld. CIT (A). The relevant provision of the Act is extracted herein below for reference:- Section. 115JB Explanation-[1] - For the purposes of this section, book profit means the net profit as shown in the profit and loss account for the relevant prev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... below for reference:- The Assessing Officer, while computing the book profits of a company under section 115J of the Income-tax Act, 1961, has only the power of examining whether the books of account are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act. The Assessing Officer, thereafter, has the limited power of making increases and reductions as provided for in the Explanation to section 115J . The Assessing Officer does not have the jurisdiction to go behind the net profits shown in the profit and loss account except to the extent provided in the Explanation. The use of the words in accordance with the provisions of Parts II and III of Schedule VI to the Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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