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TMI Blog2024 (11) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... e said decision of the Hon ble Kerala High Court has not become final since the assessee had challenged the same before the Hon ble Supreme Court and the same are pending is in no way helps the assessee for allowing these appeals. In fact, in all the years, the dispute is with regard to, whether the sale of old rubber trees could be included while computing the book profit u/s. 115JB of the Act. It is also an admitted fact that the Hon ble Kerala High Court had negatived the contention of the assessee and therefore the law prevailing as on today is that the value of the sale of old rubber trees should be included while computing the book profit u/s. 115JB of the Act. Unless and until the said order has been set aside by the Hon ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the return of income had reduced the sale value of old rubber trees on the ground that it is a capital in nature and thereafter computed the income. The AO not accepted the method adopted by the assessee and he in turn included the value of the old rubber trees as income and computed the income u/s. 115JB of the Act. The AO, for rejecting the method adopted by the assessee had relied on the decision of the Hon ble Kerala High Court in the appellant s own case in which it was held that the sale value of old rubber trees is not deductible while working out the book profit for the purpose of section 115JB. Further, the AO disallowed a sum of Rs. 21,22,943/- which was paid to Mr. Pradeep Kumar for the supply of latex. The AO treated the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing the following grounds of appeal for A.Y. 2012-13: 1) The main dispute in this appeal is the non-exclusion of sale value of old rubber trees for purpose of Book Profits under sec. 115JB. Even though the Kerala High Court has decided the issue against the appellant, SLP filed before the Supreme Court has been accepted (SLP 6/2012) and is pending along with SLP for subsequent years. 2) The question of Law raised before the Supreme Court is, whether an income which is not otherwise chargeable to tax in assessment proceedings could be brought to tax indirectly, through sec. 115JB which requires a company to prepare its profit and [ass Account in accordance with the provisions of parts II and Ill of Schedule VI to Companies Act ,. The specia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15JB. 5. At the time of hearing, the Ld.AR relied on the judgment of the Hon ble Supreme Court in the case of Kalpetta Estates Ltd. vs. CIT reported in 122 ITR 501 and also the Hon ble Kerala High Court in the case of Roja Rubber Produce Co. Ltd. reported in 89 ITR 182 and contended that what is not taxable under the normal provisions should not be taxed by invoking section 115JB of the act. The Ld.DR relied on the orders of the Hon ble Kerala High Court in the appellant s own case and prayed to dismiss the appeal. 6. We have heard the arguments of both sides and perused the materials available on record. 7. We have seen that there is no dispute that the claim of the assessee that the sale value of old rubber trees would not be treated as i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) in which the similar dispute was involved i.e. whether the sale proceeds of the rubber trees is to be included for the purpose of computing book profit u/s. 115JB of the Act. The assessee mainly contended that the AO had no jurisdiction to pass an order u/s. 154 of the Act in which the AO had rectified the mistake and added the sale of old rubber trees while computing the book profit u/s. 115JB of the Act. The AO had not done the same while giving effect to the order of the Tribunal dated 03/01/2014. The main contention of the assessee is that the rectification should not be made u/s. 154 of the Act in the facts and circumstances of the case. We are of the view that the issue was already decided by the Hon ble Kerala High Court against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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