TaxTMI 
TaxTMI 
2015 (12) TMI 760
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....Appeal which is unjust and contrary to facts and circumstances of the case. 2) The learned CIT (A) ought to have appreciated that remission of liability by bank financial institution so far as it relates to the principal amount lent will be "capital receipt" and being statutorily excluded from the definition of "income" u/s. 2(24) of Income Tax Act, such capital receipt were outside the ambit of taxation under Indian Income Tax Act, 1961. 3) The learned CIT (A) has failed to appreciate that Sec. 115JB of the Income Tax Act was introduced mainly to restrict various exemption, concession and incentives and as a measure of equity so that a segment of corporate assessees having substantial income and dividend paying records shall contribu....
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....ook profits as computed under Part II and Part Ill of Schedule VI to Companies Act, 1956 and not amenable for re- computation / recasting in the normal course, but there is no total bar in either the assessee or AO making such exercise in case of any manifest errors of including receipt notional income which will not fall within the definition of "to disclose the working of the company during the financial year'. 8) The learned CIT(A) is also not justified in not admitting letter dated 08.02.2011 issued by ING Vysya Bank confirming that the remission of Rs. 43 lacs was towards the Principal under Rule 46A, which was, in fact, in compliance of the directions of the assessing officer, but received after conclusion of the assessment pro....
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.... Ltd (2010) 33 DTR 59 (Mum) c) ITAT, Jaipur in the case of Shree Cement Ltd., Ajmer Vs. Department of Income Tax dated 09.09.2011 d) ITAT, Jaipur in the case of Shree Cement Ltd., Ajmer Vs. Department of Income Tax dated 27.01.2014 e) ITAT, Hyderabad in the case of My Home Power Ltd., Hyderabad Vs. Assessee f) ITAT Mumbai in the case of Hitkari Fibers Ltd Vs JCIT dated 26.05.2003 13. For the above grounds and such other grounds that may be urged at the time of hearing, with kind permission, Appellant prays that the Hon' ble Tribunal may be pleased to : i. Set aside the impugned order dated 20.02.2014 ii. Allow the Appeal with consequential reliefs iii. Grant such other re....
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....on being capital receipt, cannot be considered as income of the assessee even for the purpose of book profits u/s 115JB of the Act. In support of his contention, he has relied upon the decision of the Mumbai Bench of the Tribunal in the case of M/s.Shivalik Venture Pvt. Ltd. vs. DCIT in ITA No.2008/Mum/2012 dated 19/8/2015 as well as the decision of the Jaipur Bench of the Tribunal in the case of ACIT vs. Shree Cement Ltd. in ITA Nos.614, 615 & 635/JP/2010 dated 9/9/2011. The learned AR of the assessee has also relied on the judgment of the Hon'ble Andhra Pradesh High Court in the case of CIT vs. Nagarjuna Fertilizers & Chemicals Ltd. in ITTA No.100 of 2003 dated 23/9/2014 and submitted that when the assessee has the disclosed the fact of c....
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....u/s 115JB of the Act. The assessee has placed reliance on various judgments as referred above. We note that the ratio of the decisions relied upon by the assessee is based on the premise that if an item of income or expenditure is required as per Part II of Schedule VI of the Companies Act to be part of P&L A/c, but the same was not disclosed in the P&L A/c and has been disclosed in the notes forming part of the accounts, then the said disclosure in the notes to the accounts would be treated as disclosure of that particular item of income or expenditure as the case may be, in the P&L A/c for the purpose of book profits u/s 115JB. In the case in hand, the assessee got remission of liability of Rs. 43 lakhs under one time settlement by the IN....