Tribunal confirms MAT addition to book profit, dismissing assessee's appeal.

The Tribunal upheld the addition of Rs. 3,70,000 to the book profit for Minimum Alternate Tax (MAT) calculation under section 115JB of the Income Tax Act, 1961, dismissing the appeal of the assessee against the order under section 143(3) for Assessment Year 2008-09. The Tribunal found that the agreed addition was part of the net profit shown in the accounts, thus confirming the correctness of the adjustment made by the Assessing Officer.

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Issues involved: Appeal against order under section 143(3) of the Income Tax Act, 1961 for Assessment Year 2008-09. Addition of Rs. 3,70,000 to book profit for Minimum Alternate Tax (MAT) calculation under section 115JB of the Income Tax Act, 1961.

Analysis:

1. Issue 1: Appeal against order under section 143(3): The appeal was filed by the assessee against the order dated 01.03.2012 passed by the ld. CIT(A)-II, Agra for the Assessment Year 2008-09. The assessee raised grounds of appeal stating that the order passed under section 143(3) by the Assessing Officer and confirmed by the CIT(A) was wrong, unjust, and illegal. However, as the assessee did not make specific submissions regarding this ground during the proceedings, this ground of appeal was rejected.

2. Issue 2: Addition to book profit for MAT calculation: The main issue revolved around whether the addition of Rs. 3,70,000 should be included in the calculation of book profit under section 115JB of the Income Tax Act, 1961. The AO had computed the book profit under section 115JB, including the admitted addition of Rs. 3,70,000. The assessee contended that the AO was not authorized to make adjustments in book profit for calculation under section 115JB, except those provided in the said section, citing relevant case law. The CIT(A) upheld the AO's decision, stating that the addition was rightly made. The Tribunal analyzed the provisions of section 115JB and noted that the net profit as per the Profit & Loss account should include the agreed addition made by the assessee before the AO. As the agreed addition was part of the net profit shown in the accounts, it was not considered an extra adjustment but a correct net profit accepted by the assessee. Therefore, the Tribunal confirmed the CIT(A)'s order, dismissing the appeal of the assessee.

In conclusion, the Tribunal dismissed the appeal of the assessee, upholding the addition of Rs. 3,70,000 to the book profit for the purpose of MAT calculation under section 115JB of the Income Tax Act, 1961.

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