2010 (9) TMI 1272 - AT - Income Tax

Summary

Issues involved: Appeal against order u/s. 115JB for assessment year 2005-06.

Grounds of appeal:
1. CIT(A) erred in confirming order u/s. 115JB.
2. CIT(A) erred in determining taxable income as &8377; 46,28,986 instead of NIL.
3. CIT(A) erred in rejecting Auditor's Report related to Sec 115JB.
4. CIT(A) erred in interpreting proviso to Sec. 115JB.
5. CIT(A) erred in not setting aside order u/s. 115JB.

Details of Judgment:
The assessee filed return showing NIL income for AY 2005-06. AO invoked Sec. 115JB due to gross total income being NIL. Assessee cited ITAT's decision but AO disagreed. AO computed book profit, leading to appeal before CIT(A).
Assessee argued Sec. 115JB not applicable without positive gross total income and tax payable. CIT(A) referenced ITAT Mumbai Bench's decision to uphold AO's view.
Regarding book profit computation, CIT(A) disallowed certain deductions claimed by assessee. CIT(A) upheld AO's book profit calculation based on Apollo Tyres Ltd case.
Assessee appealed to Tribunal, reiterating previous submissions. DR supported AO and CIT(A) orders, citing Apollo Tyres Ltd case.
Tribunal reviewed arguments and case laws, including Apollo Tyres Ltd. Upheld CIT(A) order, confirming Sec. 115JB applicability and disallowance of deductions. Assessee's appeal was dismissed on 30-09-2010.