9911796707
TMI Blog2016 (10) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing Ayurvedic and Herbal drugs. For the Assessment Year 2007-08, the petitioner had filed the return of income on 15.10.2007 declaring total income of Rs. 5.33 lacs (rounded off). Such return was taken in scrutiny by the Assessing Officer. He carried out the assessment by passing an order on 22.5.2009 in which he taxed the assessee on the basis of its book profit and applying the MAT provision of Section 115JB of the Income-Tax Act,1961 (for short 'the Act'). According to him, such book profit for the purpose of Section 115JB came to Rs. 4.59 crores (rounded off). He therefore taxed the assessee at the prevailing rate of 10% of such book profit and demanded tax of Rs. 4.59 lacs (rounded off). 2.2 In order to reopen such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that unit cannot be allowed in the hands of any other taxable unit. Therefore the allowance of such expenditure from the profit of non eligible unit at Rajkot is irregular and therefore to which requires to be disallowed. (C) Further the profit and loss account of Rajkot unit is charged with Job work CENVAT of Rs. 108984/-. However it is observed that the assessee had neither incurred any expenses towards job work nor shown any income from job work. Thus when there is no transactions in respect of job work, the expenses debited towards CENVAT requires to be disallowed. (D) It is also seen that in the computation of income of the Dehradun unit eligible for deduction u/s 80IC of the Act shows the profit from trading of goods is Rs. 18462 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld still not be any change in the assessee's tax liability. In other words, according to him, all the additions as proposed would still not result into any additional tax being levied from the assessee. This, learned counsel for the petitioner would seek to establish by pointing out that the book profit of the assessee - company, for the purpose of Section 115JB of the Act, was computed at Rs. 4.59 crores against the normal working out of the assessee's income at Rs. 8.88 lacs. He would therefore, argue that even if the additions of Rs. 50 lacs are made, the net assessable income of the assessee under normal computation provision would come to Rs. 58.88 lacs. In any case therefore, the assessee - company would still be governed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and considering the reasons recorded, it is apparent that the assessee has been assessed under the provisions of section 115JB of the Act and has paid tax of Rs. 4,72,967/- at the rate of 7.5% of Rs. 63,06,232/- as determined under the said section. According to the Assessing Officer, the income chargeable to tax that has escaped assessment by way of excess depreciation is Rs. 8.59.944/-. Adding the said amount to the amount computed under the ordinary provisions of the Income Tax Act, the aggregate amount even as per the Assessing Officer comes to Rs. 4,05,930/- which is less than the amount of tax paid by the petitioner on being assessed under section 115JB of the Act. In the circumstances, when the tax payable as per the reasons recorde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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