TaxTMI 
TaxTMI 
2011 (3) TMI 889
X X X X Extracts X X X X
X X X X Extracts X X X X
....al questions of law: " 1. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in reversing the order of the Commissioner of Income Tax (Appeals) without considering the question relating to the validity of the reassessment under Section 147 of the Income Tax Act? 2. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in disposing of the appeal under Section 254 of the Income Tax Act without considering the conclusion of the Commissioner of Income Tax (Appeals) that the proceedings under Section 147 of the Income Tax Act are barred by limitation? 3. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in concluding that the cap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fficer that the profit derived out of sale of fixed asset ought to have been credited to the profit and loss account was unsustainable. The Commissioner of Income Tax (Appeals), by order dated 21.04.1998, pointed out that the reopening of assessment was not in accordance with law and there was no failure attributable to the assessee to disclose material fact at the time of the original assessment. He pointed out that the assessee had disclosed in the account and the schedule attached to the return, the profit on the sale of land and building and that the same had been credited to the Capital Reserve Account and directly taken to the balance sheet. Quite apart from this fact, the Commissioner of Income Tax considered the merits of the inclus....
X X X X Extracts X X X X
X X X X Extracts X X X X
....required to take into account income by way of capital gains under Section 45 of the Income Tax Act. While computing the book profits under the Companies Act, the assessee has to include the capital gains for computing the book profits under Section 115J. In this connection, the Tribunal also relied on the decision of the Bombay High Court reported in 249 ITR 597 (Commissioner of Income Tax Vs. Veekaylal Investments Company Private Limited) and thus the Assessing Authority's order was restored and the order of the Commissioner of Income Tax (Appeals) was set aside. Aggrieved by the same, the present appeal is filed by the assessee. 5. Learned counsel appearing for the appellant placed reliance on the decision of the Supreme Court ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of book profits. Referring to the Bombay High Court decision reported in 249 ITR 597 (Commissioner of Income Tax Vs. Veekaylal Investments Company Private Limited), the Tribunal held that the capital gains on the sale of capital asset was liable to be included for the purpose of computing book profits and thereby allowed the Revenue's appeal. When the assessee had raised a specific ground on the validity of reopening of the assessment on the ground of limitation before the Commissioner of Income Tax (Appeals) and succeeded therein, the Tribunal should have considered the issue on limitation and jurisdiction under Section 147 before reversing the order of the Commissioner of Income Tax (Appeals). Since the issue on jurisdiction and limitat....