Assessee's appeal partly allowed on section 115JB, dividends issue upheld. Costs claim dismissed as not pressed.

The appeal filed by the assessee was partly allowed as the Tribunal found in favor of the assessee regarding the applicability of section 115JB and the impact of undeclared dividends. The Tribunal upheld the assessee's contentions citing relevant High Court judgments. However, the claim for costs of appeal under section 254(2B) was dismissed as the ground was not pressed.

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Issues involved:
The issues involved in this case are:
1. Applicability of section 115JB on the assessee's income calculation.
2. Whether the assessee's failure to declare dividends affects the applicability of section 115JB.
3. Claim for costs of appeal under section 254(2B) of the Income-tax Act, 1961.

Issue 1: Applicability of section 115JB:
The assessee, engaged in Share Dealing and Investment, declared a loss but earned a net profit as per the Profit & Loss Account. The assessing officer determined the Book Profit under section 115JB, leading to a tax liability. The CIT(A) upheld this decision. The assessee contended that the issue was covered by a Tribunal order and a High Court judgment in favor of the assessee, citing the case of CIT - Vs- Vishnu Sugar Mills Ltd. The Departmental Representative objected, arguing that the previous judgments did not consider section 115JB and relevant Supreme Court decisions. The Tribunal found the objections invalid, stating that the High Court judgment did indeed pertain to section 115JB, and upheld the appeal on this ground.

Issue 2: Impact of Undeclared Dividends on section 115JB:
The assessee argued that since no dividends were declared, section 115JB should not apply, citing a specific case. The Departmental Representative raised objections based on different sections and court decisions. The assessee countered, asserting that the High Court judgment in question specifically related to section 115JB. The Tribunal found in favor of the assessee on this issue as well.

Issue 3: Claim for Costs of Appeal:
The assessee sought costs of appeal under section 254(2B) due to alleged non-compliance with binding judgments by lower authorities. However, this ground was not pressed and was consequently dismissed.

In conclusion, the appeal filed by the assessee was partly allowed based on the findings related to the applicability of section 115JB and the impact of undeclared dividends. The claim for costs of appeal was dismissed.

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