Tribunal Partly Favors Assessee: Extraordinary Items Included, Software Depreciation Upheld, Provident Fund Addition Deleted.

The tribunal partly allowed the assessee's appeal, ruling in favor of the assessee on several issues. It confirmed the inclusion of extraordinary items in book profits under section 115JB, deleted the addition for delayed Provident Fund payments, upheld 25% depreciation on software, and directed reconsideration of sales-tax disallowance. Additionally, it granted consequential relief concerning interest levied under sections 234A and 234B.

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Issues involved:
1. Computation of book profits under section 115JB of the Income-tax Act, 1961.
2. Addition of delayed payment of Provident Fund.
3. Disallowance of depreciation on software.
4. Disallowance of sales-tax payment under section 43B of the Act.
5. Levy of interest under sections 234A and 234B of the Act.

Detailed Analysis:
Issue 1: The first issue pertains to the computation of book profits under section 115JB. The Assessing Officer disagreed with the assessee's method of calculating book profits by including extraordinary items. The CIT(A) upheld the AO's decision, citing the Supreme Court's judgment in Apollo Tyres Ltd. v. CIT. However, the tribunal considered the provisions of section 115JB and Schedule-VI of the Companies Act, concluding that extraordinary items must be included in the Profit & Loss Account. The tribunal ruled in favor of the assessee, allowing the base figure of Rs. 978.55 lakhs for computing book profits, as per the law.

Issue 2: The second issue concerns the addition of delayed payment of Provident Fund. Following a precedent, the tribunal deleted the addition since the entire payment was made before the end of the accounting year.

Issue 3: The third issue involves the disallowance of depreciation on software. The tribunal upheld the CIT(A)'s decision to grant depreciation at 25 percent, as conceded by the assessee's counsel.

Issue 4: The fourth issue relates to the disallowance of sales-tax payment under section 43B of the Act. The tribunal directed the CIT(A) to reconsider the issue based on new evidence provided by the assessee during appellate proceedings.

Issue 5: The final issue concerns the levy of interest under sections 234A and 234B of the Act. The tribunal directed the Assessing Officer to grant consequential relief to the assessee.

In conclusion, the tribunal partly allowed the appeal of the assessee, addressing various issues related to the computation of book profits, additions/disallowances, and the levy of interest under the Income-tax Act.

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