TaxTMI 
TaxTMI 
2014 (5) TMI 1138
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....arises out of the assessment completed under Section 143(3) read with Section 147 of the Income-tax Act, 1961. 2. This appeal was earlier heard and disposed of by the Tribunal through its order dated 19th July, 2012. The appeal was heard along with two other appeals in I.T.A. No. 430(Mds)/2012 and I.T.A. No. 431(Mds)/2012. Those two appeals related to the assessment year 2003-04. The appeal in I.T.A. No. 430/Mds/2012 was filed by M/s Ashley Investments Ltd. and the appeal in I.T.A. No. 431/Mds/2012 was filed by the assessee. All the three appeals were disposed of through a common order dated 19th July, 2012. 3. In all the three appeals, common ground raised by the assessee was against the reopening of assessments under Section 147. Th....
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....We found that we dismissed the appeal of the assessee on the ground of jurisdiction but failed to adjudicate other grounds raised in the appeal. Accordingly, we recalled the order passed in I.T.A. No. 432/Mds/2012 dated 19th July, 2012 to hear and dispose of the appeal on merits. It is thus this appeal has come up for hearing before this Bench for the second time. 7. The first issue raised by the assessee is regarding the deduction of provision for diminution in the value of investment while computing the book profit under Section 115JB. This deduction made by the assessee was supported by the judgment of the Hon'ble Supreme Court rendered in the case of CIT v. HCL Comnet Systems And Services Ltd. (305 ITR 409). In the said judgment, the....
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....ts of the Courts. 9. We considered this issue in detail. We find that the amendment brought in by Finance Act, 2009 cannot be held to be prospective as the Act has made it clear that the amendment is to take retrospective effect from 1st April, 2001. It is seen in the assessment order that in fact the assessee has not objected to the action of the Assessing Officer adding back this amount to the book profit for the purpose of Section 115JB. 10. However, we are considering the issue on its merit. The contention of the assessee is that the "diminution in the value of the asset" has been reduced by the assessee from the current asset's value and it has not created any separate provision in respect of diminution in the value of asset. In ....
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....increase the loss of the assessee by debiting to Profit & Loss account. As far as the credit entry is concerned, it can either be shown as a separate provision on the liability side of the balance sheet or reduce from the current asset's value shown in the asset side of the balance sheet. This is only an accounting format. It does not change the character of the amount sought to be deducted by the assessee. It does not affect the accounting/financial result. It always affects the income or loss aspect of the assessee. 11. Therefore, only for the reason that the assessee has not created a separate provision, but only reduced the diminution in the value of investment from the current asset's value, does not make any difference and the adju....