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TMI Blog2019 (6) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... ent on this issue. CIT(A) also didn t elucidate as to how the book profit was correctly computed at 9,29,04,504/- in the order dt.26.12.2012 u/s.251/153A/143(3) of the Act. We note that provision of section 115JB is a code itself and hence whatever mentioned in the section should be followed to compute book profit. We are of the view that the Assessing Officer should examine what is additions or deductions in the book profit as computed by assessee company as per the provisions of Companies Act. Provisions relating to adjustments by way of increase and decrease to the net profit shown by the assessee in profit and loss account are very explicit in section 115JB. The items which are to be added to the net profit have been listed out in Expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 3. Grounds of appeal raised by the revenue are as follows: 1. That on the facts and in circumstances of the case, the ld. CIT(A) erred on facts as well as in law in holding that rectification u/s 154 for recomputing book profit u/s 115JB was not warranted, ignoring the fact that the book profit was computed on the basis of return filed by the assessee voluntarily u/s 153A. 2. That the appellant craves for leave to add, alter or withdraw any ground or grounds of appeal before or at the time of hearing of the appeal. 4. Brief facts qua the issue are that the return of income for the A.Y. 2009-10 of the assessee company was filed on 05.07.2012 disclosing total loss of ₹ 10,54,59,094/-. Scrutiny assessment u/s 153A/143(3) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er u/s 154 dated 08.06.2014 enhancing the book profit u/s 115JB in the order passed u/s 251/153A/143(3) dated 26.12.2012. On examination of the order under appeal and earlier orders for the year under consideration it is observed that in the order dated 26.12.2012 passed u/s 251/153A/143(3) the book profit u/s 115JB has been correctly computed at ₹ 9,29,04,504/-. There is no mistake in the said calculation which has been done as per the direction of the ld. CIT(A) in the quantum appeal. In view of above facts and following my decision in the case of appellant in A.Y. 2008-09 in Appeal no. 286/CC-3(4)/CIT(A)-21/14-15 dated 21.11.2014, the A.O. is directed to assess the book profit u/s 115JB at ₹ 9,29,04,504/-. The ground no. 2 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 41,34,82,495/- Add: Bogus Purchase Rs..1,20,41,23,721/- ₹ 1,61,76 ,06 ,216/- Less: Proportionate bogus sales eliminated ₹ 1,20,41 ,23 ,721/- Book Profit ₹ 41,34,82,495/- 4. The assessee preferred an appeal before the CIT(A) against the order passed by the AO. The CIT(A) allowed the appeal of the assessee in part vide order dt. 22/11/2012 and directed the AO to eliminate the bogus sales at ₹ 1,52,47,01,711/- instead of ₹ 1,20,41,23,721/-. Accordingly, the AO while giving effect of the CIT(A)'s order, determined the book profit at ₹ 9,29,04,504/- as under: Net Profit as per the Profit & Loss Account - ₹ 41,34,82,495/- Add : Bogus Purchase ₹ 1 ,20,41,23,721/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... how the book profit was correctly computed at ₹ 9,29,04,504/- in the order dt.26.12.2012 u/s.251/153A/143(3) of the Act. 8. Under the circumstances, the order of the CIT(A) is perverse and therefore it is prayed that the same may be set aside and that of the AO (Order dt.08/06/2014 u/s. 154/251/ 153A/143(3) may be restored. 9. ITA 169/Ko1/2015' for the AY 2008-09 is similar to the facts or the case. Hence the submission for-the AY 2009-10 may kindly be considered for AY 2008-09 also." 8. The ld. Counsel for the assessee defended the order passed by the ld. CIT(A). 9. We have heard both the parties and perused the material available on record. We note that no cogent explanation was given by the assessee in the course of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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