2020 (1) TMI 117

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....t') dated 03.03.2016. 2. The grounds of appeal raised by the assessee are as follows: 1. That on the facts and in the circumstances of the case, the ld. CIT(A) has erred in confirming the action of ld. A.O. who computed book profit u/s 115JB by deducting the exempt income u/s 10(1) at Rs. 1,19,76,438/- instead of Rs. 2,08,86,160/- worked out in the main computation of income. 2. That the appellant craves leave to add, alter, adduce or amend any ground or grounds on or before the date of hearing of the appeal. 3. Brief facts qua the issue are that during the assessment proceedings the Assessing Officer has computed the revised income from tea growing and manufacturing business at Rs. 3,48,10,266/- as follows: Thereaft....

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....es: :       (i) Dividens u/s 10(34): : Rs. 2,09,660/-     (ii) Tax free interest u/s (10)(15)(iv)(h): : Rs. 17,25,000/-     (iii) Tea Board subsidy u/s 10(30): : Rs. 1,19,700/-       :   Rs. 20,54,360/-     :   Rs. 2,33,71,086/-   Less: Other incomes :       (i) Profit on sale of investment: : Rs. 6,92,769/-     (ii) interest other than exempted interest : : Rs. 26,68,087/-     (iii) Rental income : : Rs. 49,500/-         :   Rs. 3....

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....pellate has submitted that the AO determining book profits u/s. 115JB by incorrectly deducting exempt agricultural income u/s. 10(1) of the I. T. Act at Rs. 1,19,76,438/-, as against Rs. 2,08,86,160/- correctly deductible. That exempt agricultural income u/s. 10(1) is a sum of Rs. 2,08,86,160/- as worked out in the order by the AO, while computing taxable income per normal income tax provisions, [Rs. 3,48,10,266/- being the revised composite income less Rs. 1,39,24,106/- being forty percent income chargeable to tax under I. T. Act as per Rule 8]. That the AO while computing book profits u/s. 115JB of the I. T. Act, as considered a sum of Rs. 1,19,76,438/- by stating the same to be agricultural income u/s. 10(1), in spite of the agricultural....