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TMI Blog2019 (5) TMI 2001X X X X Extracts X X X X X X X X Extracts X X X X ..... /s 115JB of the Act. After detailed discussion, it has been held that adjustment of the amount of Debenture Redemption Reserve made while computing the book profits u/s 115JB of the Act is permissible and is within the purview of the law. The decision of CIT(A) is in consonance with the aforesaid legal position and even before us, no contrary decision has been brought out by the Revenue and as a consequence, we hereby affirm the decision of CIT(A) on this aspect. Thus, the Revenue fails in its appeal. Addition u/s 68 - non-establish identity, creditworthiness of the lender and genuineness of the transaction - HELD THAT:- We observe that CIT(A) has called for a remand report from the AO in the appellate proceedings and during the remand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e within the meaning of Explanation l(b) to section 115 JB of the Act. 2. On the facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs. 25,00,000/- made u/s 68 of the Act even though the assessee was unable to establish the identity and creditworthiness of the lender and the genuineness of transaction. 3. On the facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs.24,29,082/- on account of disallowance of interest expenditure by the AO even though the assessee failed to establish the identity and creditworthiness of the parties from whom the loan was taken and also failed to establish the genuineness of the transactions. 4. The appellant p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption reserve has been reduced from book profit as per explanation 1 to section 115JB of the Act. The reply of the assessee did not find favour with the AO and the AO came to the conclusion that the reserve set aside is in the nature of reserve which is not covered in the definition of specified reserve and therefore squarely covered within the ambit of disallowance for the purpose of calculation of book profit under section 115JB of the Act and added back to the income of the assessee by observing that in .AY. 2010-11 and 2011-12 also the similar setting apart was added back to the profit of the assessee. 5. The Ld. CIT(A) allowed the appeal of the assessee by following the decision of Hon ble Jurisdictional Bombay High Court in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of computing the book profits u/s 115JB of the Act. After detailed discussion, it has been held that adjustment of the amount of Debenture Redemption Reserve made while computing the book profits u/s 115JB of the Act is permissible and is within the purview of the law. The decision of CIT(A) is in consonance with the aforesaid legal position and even before us, no contrary decision has been brought out by the Revenue and as a consequence, we hereby affirm the decision of CIT(A) on this aspect. Thus, the Revenue fails in its appeal. 9. Since the facts in the year under consideration are identical, we, therefore, respectfully following the decision of the co-ordinate bench of the Tribunal uphold the order of Ld. CIT(A) by dismissing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese loans should not be added to the income of the assessee which was replied vide written submissions dated 27.03.2015 accompanying confirmations of account along with financials of the said lenders and requested the AO to issue notices under section 133(6) to obtain the further information. Thereafter, the AO rejecting the contention of the assessee added sum of Rs.25 lakhs being loan raised during the year as unproved and unexplained and added the same to the income of the assessee under section 68 of the Act. 12. After hearing both the parties and perusing the material on record, we observe that Ld. CIT(A) has called for a remand report from the AO in the appellate proceedings and during the remand proceedings the AO issued notice un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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