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TMI Blog2012 (4) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... ed – Decided against the Revenue. - ITA 612/2009 - - - Dated:- 28-3-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant: Ms. Rashmi Chopra, sr. standing counsel For Respondent: Dr. Rakesh Gupta and Ms. Poonam Ahuja, Advs. SANJIV KHANNA, J: (ORAL) This appeal filed by the Revenue under Section 260 A of the Income Tax Act, 1961 ( Act‟, for short) impugns order dated 29.8.2008 passed by the Income Tax Appellate Tribunal ( Tribunal‟ for short) in the case of R.T.C.L. Ltd. and relates to assessment year 2002-03. Having heard the counsel for the parties, we feel no substantial question of law arises in the present appeal. 2. The Assessing Officer vide order dated 15.3.2005 had assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt accounting year had only to be considered. Certainly, it is undisputed fact that further debit of Rs.3,74,54,471/- was not the expenditure for the current year but undisputedly it was prior period adjustments on account of change in the depreciation method. Profits for the relevant period as shown in the P L account is relevant and while working out such profits and adjustments for prior period cannot be allowed as per relevant provision of I.T.Act. Since while passing the 143(3) order, the AO has committed apparent mistake of the law. Therefore, in my considered view the AO was fully justified in rectifying the said mistake through aforesaid order passed u/s 154 of the I.T. Act. Various decisions which are relied upon by Sh. Taneja ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of assets); or 6. We are not inclined to go into the said question and issue in the present case as we feel that the Assessing Officer could not have examined and gone into the said aspect while exercising limited jurisdiction under Section 154 of the Act. The jurisdiction under the said Section is confined and restricted to rectification of errors and mistakes which are apparent from the record. The Assessing Officer cannot go into a debatable issue on which two or more views are possible and pass an order on merits. We have quoted the orders passed by the Assessing Officer as well as CIT(Appeals). They have not indicated or specifically stated how and why the issue was clear and that no debate or two views were possible. The conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the net profit as shown in the accounts of the assessee after writing off arrears of depreciation of the earlier years would alone represent the book profits of the assessee and it was not for the Assessing Officer to substantiate his own figures in its place. The learned DR however buttressed the view from a different angle and submitted that the arrears of depreciation had been claimed by the assessee below the line of the profit and loss account and, therefore, it cannot form part of the profit loss account and book profit to be provided only above the profit line. This issue is also not res Integra and the Tribunal in the case of Gulf Oil Corporation Limited vs. ACIT 111 ITR 124 dealt with the issue by observing as under: 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel that the starting point for computation of book profits for the purposes of Section 115JB should be Rs.660.81 lakhs which is the final balance in the Profit and Loss account carried to balance Sheet. It may also be noted from the above discussion that even extraordinary items have to be debited to the Profit and Loss Account. Having adopted the figure of Rs.660.81 lakhs as the starting point, the same has to be increased by the items specified in clauses (a) to (f) and has to be reduced by the items specified in clauses (i) to (vii) given in the Explanation. No other adjustment is permitted by law and also as laid down by the Supreme Court in the case of Apollo Tyres Ltd. (supra). None of the clauses given in the Explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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