TMI Blog2009 (9) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... et profit as per the profit and loss account unless the book profit had been increased by the amount of the reserve in the year of the creation of such reserve. - 851/2009 - - - Dated:- 22-9-2009 - A. K. SIKRI and VALMIKI J.MEHTA, JJ. Mr. Ajay Vohra, Ms. Kavita Jha, Ms. Akansha Aggarwal and Mr. Sriram Krishna, Advocates, for the appellant. Mr. Sanjeev Sabharwal, Advocate, for the respondent. JUDGMENT The judgment of the court was delivered by VALMIKI J. MEHTA, J. - The present appeal under Section 260-A of the Income Tax Act, 1961 has been filed by the appellant company against the order dated 16.1.2009 passed by the Income Tax Appellate Tribunal for the Assessment Year 2001-2002 whereby the Tribunal has held that for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al provision for payment of tax by certain companies - (1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee, being a company, the income-tax, payable on the total income as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2001, is less than seven and one-half per cent of its book profit, such book profit shall be deemed to be the total income of the assessee and the tax payable by the assessee on such total income shall be the amount of income -tax at the rate of seven and one-half per cent. (2) Every assessee, being a company, shall; for the purposes of this section, prepare its profit and loss acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of section 115 JB of the Act, we find that proviso to clause 1 of the explanation inserted/substituted w.e.f. 1.4.97, the reserves of any nature, except other than reserve specified under section 33 AC, if debited to P L Account is to be added back to the book profits of the assessee company. As per clause (i) the amount withdrawn from any reserve or provision, if any, such amount credited to P L Account is required to be reduced from P L Account after adjustment as specified in causes (a) to (f). From the amended provision it is clear that prior to the insertion/substitution of clause (i) of aforesaid explanation it was open to the assessee to reduce the sum withdrawn from revaluation reserve, while computing book profit, amounts with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be ascribed thereto. We are further of the opinion that the Tribunal is bound to give literal interpretation to ambiguous provisions of the Act and not interpret them in any other manner which are against the wisdom of the creators of the statute who created/amended the provision with the intention that the same is to be followed while considering the issues depending on the application thereof. Hence, we are also duty bound to adhere to the plain meaning of the section in the manner as indicated above and apply the same while deciding the issue." 5. Before us, the learned counsel for the appellant/assessee has again urged what was urged by him before the Tribunal that the appellant company simply acted on the basis of accounting stan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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