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TMI Blog2011 (9) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... ha Vijayaraghavan, J.M. This appeal by the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-V, Hyderabad dated 30.06.2008 for the assessment year 2004-05. 2. The assessee-company derives income from business of publishing newspapers, telecasting and manufacture of food products. The assessment was completed u/s. 143(3) of the Income-tax Act, 1961 and the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akhs debited to Profit and Loss A/c. The learned AR further stated that non-consideration of prior period expenditure of ₹ 312.97 lakhs debited to Profit and Loss A/c. is against the decision of the Hon'ble Apex Court in Apollo Tyres Ltd. vs. CIT (255 ITR 273). He further submitted that prior period expenditure debited to Profit and Loss A/c. has to be considered for computing book profit u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and after charging ₹ 109.96 lakhs as additional advisory fee for sale of investments, classifying these two items as extraordinary items in the Profit and Loss A/c. Profit before the extraordinary items amounted to ₹ 1,085.45 lakhs. The Assessing Officer took the figure of ₹ 1,085.45 lakhs as the base figure for calculating book profit, stating that the assessee was not entitle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the extraordinary items have to be debited to the Profit and Loss A/c.. Respectfully following the decision of the Hon'ble jurisdictional ITAT, I hold that prior period expenditure of ₹ 312.97 lakhs has to be considered for computing the book profit and accordingly the Assessing Officer is directed to consider the same and also to consider the amount which is the final balance in the Profit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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