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Issues involved:
The judgment deals with the ascertainment of book profits of a company for the purpose of section 115JB of the Income Tax Act, 1961. Details of the Judgment: 1. The respondent, a company, contested the addition of Rs. 53 lakhs to its book profits under clause (c) of Explanation 1 to sub-section (2) of section 115JB. The Tribunal ruled in favor of the assessee, stating that the amount did not fit into the clause for addition to book profits, reducing the tax liability. 2. The Revenue appealed to the High Court under section 260A of the Act, citing a change in law brought by section 46 of Finance (No. 2) Act, 2009. The amendment added clause (i) to the Explanation of section 115JB, covering amounts set aside as provision for diminution in asset value. 3. The retrospective effect of the amendment from April 1, 1998, encompassed the assessment year 2003-04. The Court, after hearing arguments from both sides, ruled in favor of the Revenue based on the statutory provisions and the impact of the amendment on the case. 4. The Court declined the request for further submissions from the assessee's counsel, stating that the amendment settled the matter in favor of the Revenue. Consequently, the appeal by the Revenue was allowed, upholding the addition to the book profits based on the amended provisions of section 115JB.
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