2016 (11) TMI 1021

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....l (I.T) For the Respondent : Mr T. Poornam JUDGMENT ANITA SUMANTH, J. 1. The assessment year is 2003-2004. We are called upon to decide the following substantial question of law admitted for our consideration. "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that Capital gains which form part of the net profit is the profit and loss....

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....4EC of the Income Tax Act. 3. Placing reliance on the judgment of the Supreme Court in the case of Apollo Tyres Ltd vs CIT (255 ITR 273) and Bombay High Court in the case of Commissioner of Income Tax Vs. Veekaylal Investments (P) Ltd (249 ITR 597) the claim under section 54EC was rejected for the purpose of computation of tax under Section 115 JB of the Act. 4. Appeals before the Commission....

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....The provisions of sub-section (5) of s.115 JB open the assessment to the application of all other provisions contained in the Income tax Act except if specifically barred by that section itself. S.115 JB (5) reads as follows; '(5) Save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section.' 7. T....

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....supra) considers the inclusion of capital gain for the purposes of assessment under section 115 J. Both judgements are rendered in the context of Section 115 J which does not contain a provision analogous to sub-sections (4) of section 115 JA or (5) of section 115 JB of the Act. Thus while an assessment u/s 115J would be concluded exclusively on the basis of the book profits as adjusted by the ite....