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TMI Blog2022 (6) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... account in accordance with the Companies Act, 2013. Once the error was committed by the assessee in preparation of Profit and loss statement by not adding the entire amount shown in 26AS as income of the assessee either on account of omission, inadvertent error or by way of fraud which was otherwise required to be included in the statement of the profit and loss account, then it cannot be said that the said amount which was wrongly or deliberately or otherwise left to be included in the book of accounts, cannot be added to the book profit for the purpose of section 115JB of the Act. In our considered opinion, no person can be permitted to gain from his own mistake either deliberately or intentionally or otherwise done. Giving a pedan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the amount) which was reflected in section 26AS cannot be added to the book profit, as the same was not provided under the Explanation 1 to section 115JB. It was also the contention of the ld. AR that the Hon'ble Supreme Court in the case of Apollo Tyres v. CIT (255 ITR 273)(SC) has decided the issue in favour of the assessee , whereby it was held that for the purposes of computing the book profit, the amount which are mentioned in Explanation 1 to section 115JB , can be added and no other amount/s can be added to the book profit. 3. Per contra, the ld. Departmental Representative (ld. DR for short) relied upon the order passed by the lower authorities and our attention was drawn to the paragraph 7.3 of the ld. CIT(A) s order which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the normal computation of income, which reads as under: 5.1 During the assessment proceedings, the assessee was asked to reconcile the income appearing in the Form 26AS. The assessee submitted the details vide letter dated 26.12.2016 regarding teh reason for the difference. The assessee offered the income of Rs.30,82,223/- as per the table below: .......... 5.2 As can be seen, the income as per 26AS is Rs.8,52,91,132/- and as per books Rs.8,22,08,909/-. Thus, the differential amount of Rs.30,82,223/- is added to the total income of teh assessee. Penalty u/s.271(1)(c) are separately initiated for furnishing inaccurate particulars of income. 5. The said amount of Rs.30,82,223/- was also added by the Assessing Officer in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... left to be included in the book of accounts, cannot be added to the book profit for the purpose of section 115JB of the Act. In our considered opinion, no person can be permitted to gain from his own mistake either deliberately or intentionally or otherwise done. Giving a pedantic interpretation to the book profit as mentioned in the Explanation would be the antithesis to the purpose, for which it was enacted by the legislature and would result in absurdity and contradictions. Hence amount which was rightfully offered as income by the assessee during the assessment proceedings is also required to be added to the Book Profit for the purposes of section 115JB also. Hence we do not find any merit in the appeal of the assessee, Accordingl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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