2013 (12) TMI 125

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....ture payment of deferred sales tax loan at net Present value (NPV) for the year under consideration.      2. The learned CIT(A) erred in allowing the assessee the amount of surplus of Rs.36,57,30,272/- that has arisen due to premature payment of deferred sales tax loan at net present value (NPV) to exclude from the book profits while working out income under section 115JB of the Income Tax Act, 1961. 2. The facts which are revealed from the record as under. The assessee is engaged in the manufacture and sale of Drive train components namely propeller shafts, universal joints, axles and transfer cases and component thereof which is concerned with the transmission system. The assessee filed the return of income for t....

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....see. So far as the computation under the normal provisions of the Act is concerned, following the decisions of the Hon'ble Special Bench of the ITAT in the case of the Sulzer India Ltd. Vs. JCIT 134 TTJ(Mumbai) (SB)385/47DTR 329. The CIT(A) also accepted the plea of the assessee that the said amount is to be excluded while computing the Book Profit in view of the amendment to Sec.115JB of the Act more particularly insertion of Clause-(viii) below Explanation-1 w.e.f. 01-04-2001 by the Finance Act, 2001. Now the revenue is in appeal before us. 5. We have heard the rival submissions of the parties and perused the record. In this case, it is not disputed that the provisions of Sec. 115JB are applicable to the assessee. The basic facts perta....

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....sue in dispute. So far as the treatment of the said amount while computing the income under the normal provisions of the Income-tax Act is concerned, the revenue has to fail as it is squarely covered in favour of the assessee by the decision of the Hon'ble Special Bench of the ITAT, Mumbai in the case of Sulzer India Ltd. (supra). 6. Now the next question is whether the benefit availed by the assessee to the extent of Rs.36,57,30,272/- and which is admittedly credited to the profit and loss account and part of the profits prepared as per the books of account of the assessee company can be excluded applying Clause-(viii) in Part-II below Explanation-1 to Sec. 115JB of the Act. In respect of the treatment of the deferred sales tax, two cla....