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TMI Blog2018 (6) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... 115JB, being a sick company. This contention of assessee is accepted. The amount added to the P&L A/c being capital receipt should not have been brought to tax there are Co-ordinate Bench decisions on the issue having held that the amount of capital receipt which otherwise not taxable cannot be taxed u/s 115JB. The recent one is in the case of M/s. JSW Steel Limited Vs. ACIT [2017 (4) TMI 47 - ITAT MUMBAI] relied upon by assessee. There is merit in assessee’s contention but that becomes academic only as there are contradicting views on this subject and we need not go into that issue for the simple reason that assessee being a sick company, provisions of Section 115JB are not applicable. The Coordinate Bench has already held so in earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad in its order in ITA No. 1056/Hyd/2012, dt. 23-01-2013 held that we do not find any infirmity in the order of the CIT(A) in this behalf, and in any event, the assessing officer cannot take up the issues which are debatable while dealing with the returns in terms of Section 143(1) of the Act . The Co-ordinate Bench deleted the tax demand raised u/s. 115JB of the Act as it is outside the purview of Section 143(1) of the Act. 2.2. Thereafter, AO issued a notice u/s. 148 of the Act on 10-06- 2013 and in the re-assessment proceedings, assessee claimed that it is a sick company on the basis of its negative net wealth figure. AO required assessee to furnish the order, if any, issued by the Board of Industrial and Financial Restricting to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e) at ₹ 71,48,250/-and Interest income of ₹ 200/- which constituted the total receipts at ₹ 71,48,450/-. Against it, after claiming all the expenditures, the net profit for the year is shown at ₹ 69,19,579/-. Now, the provisions of section 115JB of the Income Tax Act,1961 are a special provisions. Unless otherwise such provisions enable, the AO can neither add nor deduct any of the receipts or expenditures. The appellant could not show specifically as to how its claim could be deducted from the admitted income within the provisions of Explanation 1 of section 115 JB of the Act. When, the entry (ies) pleaded by the appellant do not fall in any of the clauses of the Explanation 1 of section 115 JB of the Act, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y specified in the order to prepare, having regard to such guidelines as may be specified in the order, a scheme providing for such measures in relation to such company. (4) The Board may. _ (a) If any of the restrictions or conditions specified in an order made under sub-section (2) are not complied with by the Company concerned, 3(or if the Company fails to revive in pursuance of the said order,) review such order on a reference in that behalf from any agency referred to in subsection (2) of section 15 or on its own motion and pass a fresh order in respect of such company under sub-section (3); (b) If the operating agency specified in an order made under sub-section (3) makes submission in that behalf, review such order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] (Hyd); ii. M/s. Vista Pharmaceuticals Ltd., Vs. DCIT [ITA No. 840/Hyd/2011, dt. 17-02-2012]; iii. M/s. JSW Steel Limited (Formerly known as Jindal Vijaynagar Steel Limited) Vs. ACIT, ITA No. 923/Bang/2009, dt. 13-01-2017; 6. Ld.DR, however, reiterated the reasoning of AO and CIT(A) and submitted that the annual statements prepared by assesseecompany were accepted and AO has no power to exclude any amount u/s. 115JB as reiterated by the Hon'ble SC in the case of Apollo Tyres Ltd., Vs. CIT [255 ITR 273] (SC). His prayer is to restore it to AO for fresh examination. 7. We have considered the rival contentions and perused the Paper Book and case law relied on. There is no dispute with the fact that the company has nega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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