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TMI Blog2016 (5) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... ome under section 115JB - non acceptance of loss to the tune of ₹ 1,49,819/- declared by the appellant and in connection with the acceptance to the tune of ₹ 20,57,890/- as capital gain which is infact the capital receipt - Held that:- The receipt which is not in nature of income is not required to be taxed u/s.115JA of the Act and income which is also exempted u/s. 50 of the Act would also remain exempted as per provision of subsection 4 of section 115 JA of the Act. The capital gain arising to an assessee u/s.50 of the Act on a depreciable asset is liable to be excluded from calculation on deemed profit u/s. 115JA of the Act. In view of the said circumstances it is apparent that the capital receipt to the tune of ₹ 20,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer to be present at the hearing of the appeal. The Assessing Officer did not give any response. In view of this position, it is clear that the Assessing Officer has nothing to report and does not desire to be heard in person. The ACIT(CPC), Bangalore determined the total income of the appellant at loss of ₹ 1,49,819/- for the current year, which was to be carried forward and book profit u/s. 115JB of the Act at ₹ 19,31,177/- as deemed total income. Thereafter the assessee filed an appeal before learned CIT(A) and the learned CIT(A) dismissed the appeal of the assessee. Feeling aggrieved the assessee has filed the present appeal before us. 3. The assessee has raised the following grounds of appeal:- 1. The CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to compute correct tax under the provisions of the Income Tax Act, 1961. 4.1 The CIT(A) erred in upholding levy of interest under provisions of sections 234A, 234B and 234C and charging interest of ₹ 95,605/-. The appellant submits that interest has been erroneously charged by the assessing officer. The appellant submits that interest be quashed. 4.2 The appellant without prejudice to above submits that interest charged by the Assessing Officer in any event in excessive and interest be reduced substantially. It is submitted that it be so held now. ISSUE NO.1 2:- 4. The assessee has challenged the intimation u/s.143(1) of the Act being time barred because the assessment of the assessee is in connection with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flected under the head Reserve and Surplus. The capital was not credited to the Profit Loss Account. Since the Profit Loss A/c. is required to be prepared under schedule VI of Company s Act, 1956 and shall contain only income of revenue nature derived from business operations or expenses of revenue nature incurred from the business. The contention of the assessee is that the Profit Loss Account reflected the loss to the tune of ₹ 1,26,713/- therefore, the Assessing Officer ought to have the said loss for computing book profit u/s.115JB of the Act. It is also asserted that the Assessing Officer committed an error of making an adjustment of ₹ 20,57,890/- which has been credited to the reserves and surplus, which adjustment i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer on this ground, hence the finding of the learned CIT(A) on the point is hereby ordered to be set aside. Concluding this facts that the capital gain exempted under the provision of the law is not liable to be added to the income of the assessee. Accordingly this issue is decided in favour of the Assessee and against the Revenue. ISSUE NO.4:- 6. So far as issue no.4 is concerned, the tax of the assessee was computed to the tune of ₹ 2,98,367/- and also challenged the levy of interest under provision of sections 234A, 234B and 234C. All these issues are the outcome of the decision on issue no. 3 4. Therefore, in the said circumstances the finding of the learned CIT(A) on this issue is hereby set aside and the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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