9911796707
TMI Blog2012 (11) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1997-98, claiming following substantial question of law:- Whether on the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was justified in setting aside the order of the Commissioner of Income Tax (Appeals) Ludhiana and thus deleting the addition made by AO in determining the deemed income under Section 115JA of IT Act by ignoring the fact that book profit computed by the assessee company also includes the expenses of the earlier years which should not have been included 2. Briefly, the facts as narrated in the appeal may be noticed. The assessee is a company. It filed its return of income for the assessment year 1997-98 on 28.11.1997 declaring nil income after claiming business losses and un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e counsel, the same was inadmissible while calculating deemed income under Section 115JA of the Act for purposes of determining the taxable income for the current assessment year. It was submitted that the claim of lease rent as deduction in respect of lease rent relating to the assessment years 1995-96 and 1996-97 in the current assessment year 1997-98 was not admissible in Parts II and III to the 6th Schedule of the Companies Act, 1956 (in short, the Companies Act ). Once that was so,it was urged that the assessing authority was entitled to recast the profit and loss account in accordance with the provisions of Parts II and III to the 6th Schedule of the Companies Act and thereafter recompute the profit under Section 115JA of the Act. Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the assessee had claimed deduction in respect of lease rent relating to the assessment years 1995-96 and 1996-97 during the current assessment year 1997-98. The same was not covered in Parts II and III to the 6th Schedule to the Companies Act. The Assessing Officer is entitled to recast the book profits as it is implied mandate which is given to the Assessing Officer to verify and satisfy himself whether the profit as shown in the Profit and Loss account is prepared in accordance with Parts II and III to the 6th Schedule of the Companies Act. Wherever the Assessing Officer finds that the profit is not determined in the profit and loss account in accordance with the aforesaid Schedule, he is required to adjust the profit. Further the dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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