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| The Tax Publishers2021 TaxPub(DT) 2309 (Chen-Trib) : (2021) 189 ITD 0321 : (2022) 096 ITR (Trib) 0411 INCOME TAX ACT, 1961
Section 115JB
Assessee had under-reported income received from M/s. Shell India Markets Pvt. Ltd., and hence, it could not be said that books of account of assessee were prepared in accordance with Parts II and III of Schedule - VI to the Companies Act. Hence, there was no error in the reason given by AO to re-compute book profit by making addition towards income not reported in books of accounts of assessee.
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MAT - Computationof book profits comput ed udner section 115JB - AO made addition towards difference in income reported in from No. 26AS and income as per books of account of assessee -
AO made addition while computing book profit computed under section 115JB towards difference in income reported in Form No. 26AS and income as per books of account of assessee. Assessee contended that AO had no jurisdiction to go behind net profit shown in profit and loss account, except to extent provided in Explanation to section 115J. Held: When books of account of assessee were not in accordance with Parts II and III of Schedule VI to the Companies Act, 1956, then AO was empowered to tinker with net profit by making additions. In the instant case, assessee had under-reported income received from M/s. Shell India Markets Pvt. Ltd., and hence, it could not be said that books of account of assessee were prepared in accordance with Parts II and III of Schedule - VI to the Companies Act. Hence, there was no error in the reason given by AO to re-compute book profit by making addition towards income not reported in books of account of assessee.
Distinguished:Apollo Tyres v. CIT (2002) 255 ITR 273 (SC) : 2002 TaxPub(DT) 1371 (SC)
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2010-11 & 2012-13
INCOME TAX ACT, 1961
Section 115JB
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