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| The Tax Publishers2019 TaxPub(DT) 1296 (Bang-Trib) INCOME TAX ACT, 1961
Sedction 115JB
As there is no provision under section 115JB for addition of forex loss or prior period expenditure, therefore, such disallowances/additions are not tenable and CIT could not issue direction to make additions/disallowances not allowed under the law. As twin conditions of an erroneous order and prejudicial to the interest of revenue were not satisfied on both disallowances in respect of 'forex losses' and 'prior expenditure', therefore, impugned order of CIT was wrong.
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Revision under section 263 - Erroneous and prejudicial order - AO not having disallowed - Forex losses and 'Prior period expenditure' while computing book profit under section 115JB
CIT held assessment order to be erroneous and prejudicial to the interest of revenue on the ground of AO not having disallowed Forex Loss due to Mark to Market Losses' and Prior period expenditure while computing 'book profits' under section 115JB.Held: As there is no provision under section 115JB for addition of forex loss or prior period expenditure, therefore, such disallowances/additions are not tenable and CIT could not issue direction to make additions/disallowances not allowed under the law. As twin conditions of an erroneous order and prejudicial to the interest of revenue were not satisfied on both disallowances in respect of 'forex losses' and 'prior expenditure', therefore, impugned order of CIT was wrong.
Relied:Apollo Tyres Ltd. (2002) 255 ITR 273 (SC) : 2002 TaxPub(DT) 1371 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 263
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