9911796707
TMI Blog2025 (1) TMI 879X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order'] passed by the learned Income Tax Appellate Tribunal [hereafter 'the learned ITAT'], in ITA No. 2784/Del/2013, in respect of the assessment year (AY) 2008-09. FACTUAL BACKGROUND 2. The respondent - M/s Tata Power Delhi Distribution Limited - [hereafter 'the assessee'] is a joint venture between Tata Power Company Limited and the Government of NCT of Delhi, wherein Tata Power Company Limited, along with Tata Sons Limited, holds 51% of the shares, while the remaining 49% of the shares are held by the Government of NCT of Delhi. The assessee is engaged in the power generation and distribution of electricity in North and North West Delhi. 3. For the AY 2008-09, the assessee filed its return of income declaring a total income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Computer Security Deposit (as per para 6) Rs. 8,04,00,000 D. Disallowance on UPS (as per para 7) Rs. 30,67,449 TOTAL INCOME Rs. 78,11,09,241 II. COMPUTATION OF BOOK PROFIT Book Profit declared u/s 115JB in the computation Filed along with the Return of Income Rs. 346,06,00,973 Addition on account of Provision for Doubtful debts As per Para 5 the pre-page computation (page 18). Rs. 6,99,56,555 Depreciation on UPS (Sec 115JB(2)Expl.1(g) Rs. 30,67,449 BOOK PROFIT Rs. 353,36,24,977 Rounded Off Rs. 353,36,24,980/- TOTAL INCOME - Higher of (I) or (II) Rs. 353,36,24,980/- Assessed at Total Income of Rs. 353,36,24,980/- (Income computed under MAT). Issue demand notice and challan. Issue necessary forms. Charge Inter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2 The Hon'ble Supreme Court in Apollo Tyres Ltd. 255 ITR 273 (SC) had laid down the principle that the Assessing Officer while computing income under section 115J had the power to examine whether the books of account were properly maintained In accordance with the Companies Act and further had limited power of making additions/deductions as provided for in the Explanation to the said section. In view of the principle laid down by the Hon'ble Supreme Court the Assessing Officer has limited jurisdiction while computing the book profits under section 115JB of the Act i.e. there is no jurisdiction to go beyond the net profit shown in the Profit & Loss Account except to the extent provided in the Explanation to section 115JB of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the 1st day of April, 1997 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 Explanation below the second proviso to section 115JA as the case may be; or" In view of the above as per the provision explanation 1 of sec 115JB, while the AO is justified in making the addition of provision of doubtful debt of Rs. 699.56 lakhs as discussed in the assessment order, the AO ought to have reduced the provision for doubtful debts of Rs. 717.19 lakhs which was credited to the P&L account in view of the above mentioned provision of sl. (i) of the said explanation. Held accordingly. The appeal is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 115JB of the Act are not applicable to the appellant company. The Assessing Officer is directed accordingly. additional ground raised by the assessee is allowed" 7. Aggrieved by the decision of the learned ITAT, the Revenue has preferred the present appeal. QUESTION OF LAW 8. The present appeal was admitted on the following Question of Law, for this Court's consideration: "Whether in the facts and circumstances of the case, and in law, the ITAT was justified in deleting the additions made on account of Book Profit under Section 115 JB of the Income-tax Act, 1961?" THE DECISION 9. The primary issue for our determination is whether Section 115JB of the Act would be applicable to the assessee, who is engaged in the business of el ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
