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TMI Blog2019 (6) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... securities is nothing but double addition, as the assessee has already included this profit in its profit and loss account for the year ended 31/03/2014 drawn up under the Companies Act, 1956. If the assessee had already included this profit from long term capital gain in the profit and loss account for the year ended 31/03/2014, drawn up under the Companies Act, 1956, no separate addition can be made, once again under Explanation (1) of Section 115JB. With these directions we set aside this issue to the file of the AO. Hence this ground is allowed for statistical purposes. Whether section 115JB authorises AO to add back to the book profit the sum written off as irrecoverable by the debit of the profit and loss account? - HELD THAT:- As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Khaitan learned senior advocate for the appellant pointed out, very correctly that the tribunal has failed to determine the basic issues that were before it, namely: Whether the long term capital gain credited to the profit and loss account and included in the computation of the book profit under section 115JB of the Income Tax Act, 1961 can be added a second time to such book profit? Secondly, whether section 115JB of the Income Tax Act, 1961 authorised the assessing officer to add back to the book profit the sum of ₹ 273,97,17,182/- written off as irrecoverable by the debit of the profit and loss account? There is no point in admitting the appeal on these questions for the rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a second time to such book profit? 4.1. We find that the Assessing Officer in his order u/s 143(3) of the Act, dt. 06/10/2016 has determined the book profits u/s 115JB of the Act in the following manner:- Book Profit u/s 115JB as per return of income : Nil Add: Long Term Capital Gain :₹ 2,67,24,88,906/- Book Profit : ₹ 2,67,24,88,906/- Tax @ 18.5% :₹ 49,44,10,448/- Add: Education Cess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the file of the Assessing Officer for fresh verification as to whether it is a double addition. Mr. J. P. Khaitan, the ld. Sr. Advocate had no objections. As agreed by both the parties, we set aside this issue to the file of the assessing officer with a specific direction to examine the claim of the assessee that, the addition made in the determination of book profit u/s 115JB of the Act, of the profit on sale of pledged securities is nothing but double addition, as the assessee has already included this profit in its profit and loss account for the year ended 31/03/2014 drawn up under the Companies Act, 1956. If the assessee had already included this profit from longterm capital gain in the profit and loss account for the year ended 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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