TaxTMI 
TaxTMI 
2015 (6) TMI 27
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....rred in law and on facts in confirming addition Rs. 33,91,715/-to the book profit u/s 115JB of the Act. Ld. CIT (A) ought to have deleted addition considering various judicious I pronouncements. It be so held now. 3, 4 & 6. Ld. CIT (A) erred in law and on facts in confirming addition of Rs. 35,99,516/- of reversal of provision of income tax to the book profit u/s 115JB of the Act. Both the lower authorities ignored facts that due to statutory disclosure requirements appellant company has shown separately current year provisions of Rs. 1, 25, 00,000/-(debit) and reversal of provision of income tax of Rs. 35,99,516/-(credit) however debited only net provision Rs. 89,00,484/- in return of income and computation u/s 115JB of the Act. Ld. CIT....
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....ovisioning for the expenses in the earlier year were submitted. Accordingly, the claim for deduction of prior period expenditure of Rs. 27.36 lacs is disallowed and added to the income of the assessee. 10. On the issue of loss by fire, the assessee has claimed Rs. 85.02 lacs but how this figure is arrived was explain by the assessee as under:- The assessee lost Rs. 1,44,42,752 + 40,40,932 = Rs. 1,84.83,684/- due to fire as per certificate issued by Foods and Drugs control administrator dated 22/02/2001. Out of this the assessee received 1,05,36,758/- from insurance company against claim of fire. In addition to the loss of fire the assessee has also reduced Rs. 5 lacs from the receipts as expenditure for getting realization of claim. ....
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....Rs. 91,074/- in the book profit. Penalty U/s.271(1)(c) is initiated for furnishing inaccurate particulars of income. (Disallowance of Rs. 33,91.7151 -) 13. On the issue of adding back of provision of Income Tax of Rs. 33.99 lacs, the assessee has claimed that this being reversal of excess provision for Income tax pertaining to past period. 14. After considering reply of the assessee, vide order sheet doled 13/09/2010. The assessee was asked to furnish ledger explaining the income tax provision for last years. However, the assessee has not furnished any details in this regard. 15. The assessee company had made provisions of income lax of Rs. 1,25 crores. However, while computing taxable income if has added back only Rs. 89,00,484/-.....
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....tation of book profit only 89 Lacs were added. Therefore there was a shortfall of RS 35.99 Lacs. The amount was therefore correctly added by the assessing officer to the book profit. Appellant claimed that the excess provision of tax was credited which was earlier included in book profit. However appellant could not establish this claim by records or documents. Therefore appellant's claim cannot be accepted. The addition is accordingly confirmed." 3.2 Same has been opposed before us on behalf of assessee inter alia submitted that CIT(A) was not justified in confirming the addition of Rs. 33,91,715/- in book profit u/s. 115JB of the Income Tax Act. CIT(A) should have deleted the addition in view of according to various judicial pronou....
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....ficer, could not have varied the Profit and Loss Account of the company duly audited and prepared in terms of the provisions contained in the Companies Act." "12. We have, however, proceeded on the basis of the facts recorded by the Tribunal. Material aspect of the Tribunal's recording the fact is that the amount of Rs. 71 lakhs was reduced by the assessee passed on after approval of the company in its AGM, which was also accepted by the auditors. If that be so, the Assessing Officer thereafter could not have made any further adjustment dehors the provisions of Section 115JA of the Act. However, if these facts are for some reason to correctly recorded by the Tribunal, surely, it would be open for the Revenue to approach the Tribunal ....