2019 (6) TMI 1041

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....he Assessment Year 2014-15. 2. The Hon'ble Jurisdictional High Court in an appeal filed by the assessee in ITAT No. 1 of 2019, G.A. No. 76 of 2019, in the case of Kamsco Industries Pvt. Ltd. vs. CIT, dt. 22/01/2019, held as follows:- "We appreciate the valuable assistance provided by Mr. Ghoshal, learned senior advocate for the revenue in cutting short the hearing of this matter. We also appreciate his fairness. Mr. Khaitan learned senior advocate for the appellant pointed out, very correctly that the tribunal has failed to determine the basic issues that were before it, namely: Whether the long term capital gain credited to the profit and loss account and included in the computation of the book profit under se....

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....ities below as well as case law cited, we hold as follows:- 4. The first question of law framed by the Hon'ble High Court for our adjudication is "Whether the long term capital gain credited to the profit and loss account and included in the computation of the book profit under section 115JB of the Income Tax Act, 1961 can be added a second time to such book profit?" 4.1. We find that the Assessing Officer in his order u/s 143(3) of the Act, dt. 06/10/2016 has determined the book profits u/s 115JB of the Act in the following manner:- Book Profit u/s 115JB as per return of income : Nil Add: Long Term Capital Gain :Rs. 2,67,24,88,906/- Book Profit : Rs. 2,67,24,88,906/- Tax @ 18.5% :Rs. 49,44,10,448/- Add: Edu....

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....issue to the file of the assessing officer with a specific direction to examine the claim of the assessee that, the addition made in the determination of book profit u/s 115JB of the Act, of the profit on sale of pledged securities is nothing but double addition, as the assessee has already included this profit in its profit and loss account for the year ended 31/03/2014 drawn up under the Companies Act, 1956. If the assessee had already included this profit from longterm capital gain in the profit and loss account for the year ended 31/03/2014, drawn up under the Companies Act, 1956, no separate addition can be made, once again under Explanation (1) of Section 115JB of the Act. With these directions we set aside this issue to the file of t....