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TMI Blog2019 (1) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... no contention taken regarding the limitation having worked out against the assessee. In such circumstances on that basis alone the subsequent assessment passed in the year 2006-07 has to be found to be without any authority. The issue arise only if there exists a book profit for the year 2006-07; which would not be there if the revised assessment for the assessment year 2005-06 is permitted to stand. Only if the adjustments for the earlier year were not permitted, the book profit would turn positive by virtue of the credit made to the profit and loss account; of the provision for interest for the two years. We find that there is no question of accrual of interest, especially since the assessee had filed revised return within the time pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the two years were completed, the GOI had permitted waiver of interest upto 31.03.2005 (including the interest payable in the two assessment years, which is the subject matter of this appeal). The assessee hence filed a revised return in the first year 2005-06, deleting the provision made and adding it to the profit. The original return filed by the assessee showed a loss of ₹ 100,43,93,711/- and a negative book profit of ₹ 32,50,56,501/-. On the GOI permitting waiver of the interest for the said year, the assessee added back the same to the profits and reduced it from the losses. The book profit as per the revised computation was negative at ₹ 81,97,27,138/-. Hence, there was no tax payable even under Section 115JB for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the said year, the assessee having followed the mercantile system of accounting ? 2. Ought not the Tribunal have set aside the order passed under Section 263 on the ground of it being not legally sustainable ? 5. The learned Counsel for the Revenue would rely on the decision of the Hon'ble Supreme Court in Keshav Mills Ltd. v. C.I.T., [1953] 33 ITR 230 and C.I.T. v. Shiv Prakash Janak Raj Co.Pvt.Ltd., [1996] 222 ITR 583 to contend that the assessee followed the mercantile system of accounting and hence cannot escape from the interest liability which accrued in the year, merely on the basis of the subsequent waiver of such liability. It is also contended that the Commissioner had interfered with the assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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