2013 (1) TMI 114

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....als) was wrong and unjust in confirming the addition made by the ld. A.O. of Rs. 370000/- to the book profit for the calculation of MAT under section 115JB of the I T Act, 1961 which is wrong as nothing can be added to book profit to calculate MAT except those items which are mentioned in clauses (a) to (g) of explanation (1) of section 115JB of the Income Tax At, 1961. 3. That the appellant craves leave to add or alter one or more ground(s) during the hearing of appeal." 3. The assessee instead of putting his presence filed written submission. After hearing the ld. Departmental Representative, we proceed to decide the appeal as under :- 4. The brief facts of the case are that during the assessment proceedings the A.O. noticed that....

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....     (ii) Depreciation 2,34,619   Rs.6,04,619         Rs.21,15,246   Less:         (i) Depreciation as per companies act 2,34,619       (ii) Unabsorbed depreciation as the same is less from brought forward loss for A.Y. 2006-07 & 2007-08 (348896+260094) 6,08,990   Rs.8,43,609   Book Profit     Rs.12,71,637" 6. Before the CIT(A) the assessee agitated that while computing book profit under section 115JB, addition of Rs. 3,70,000/- is not correct. CIT(A) rejected the assessee's contention and held that the A.O. has rightly made addition of Rs.3,70,000/- while ....

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....account for the relevant previous year in accordance with the provisions of part II & III Schedule VI o the Companies Act, 1956. Thereafter certain adjustment has been provided in the section. The crux of the issue is whether this agreed addition is required to be added for the purpose of calculation of book profit under section 115JB. In such cases net profit as per Profit & Loss account means the net profit including addition agreed by the assessee before the A.O. In the case under consideration, the net profit after making addition comes to Rs. 18,80,627/- (15,10,627 + 3,70,000). This amount of Rs. 18,80,627/- is required to be considered as net profit as per the Profit & Loss account shown by the assessee. The contention of the assessee....