Computation of book profit u/s 115JB of the Income Tax Act

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘A’, NEW DELHI
Before Sh. Amit Shukla, Judicial Member
Dr. B. R. R. Kumar, Accountant Member
(Through Video Conferencing)
ITA No. 6244/Del/2019 : Asstt. Year : 2011-12
ITA No. 6245/Del/2019 : Asstt. Year : 2012-13
ITA No. 6246/Del/2019 : Asstt. Year : 2013-14
ITA No. 6247/Del/2019 : Asstt. Year : 2014-15

M/s B R Agrotech Ltd.,
1505, Vikram Tower, Rajendra
Place, New Delhi-110008

vs

ACIT,
Circle-4(1),
New Delhi

Assessee by : Sh. S. S. Nagar, Adv.
Revenue by : Ms. Alka Gautam, Sr. DR
Date of Hearing: 28.06.2021 Date of Pronouncement: 02.09.2021
ORDER

That on the facts and in the circumstances of the case, the Ld. CIT(A) was not justif ied and grossly erred in non-considering the Circular No. 68 dated 17- 11-1971 wherein the issue raised in the appeal has been squarely covered.

2. The assessee f i led the return of income declaring total income of Rs.8,14,50,536/- under the normal provisions of the IT Act and book profit of Rs.14,67,75,360/- u/s 115JB of the Act.

3. Brief facts of the issue before us are that the assessee filed a rectification appl ication u/s 154 before the Assessing Officer seeking to consider the issue of Excise Duty subsidy and Focus Product Scheme (FTS)/Focus Market Scheme (FMS) as capital receipts. The Assessing Officer rejected the application on the grounds that al lowing of such claim wil l lead to lowering of total income and the claim of the assessee is not mistake apparent from the record.

4. A close reading the Of fice Memorandum and the amendment introduced thereto with para No. 3 appearing in the Central Excise Notif ication Nos. 56 and 57 of 11-11-2002, thus, makes it amply clear that the acceleration of development of industries in the State was contemplated with the object of generation of employment in the State of Jammu and Kashmir and the generation of employment, so contemplated, was not only casual or temporary; but was on the other hand, of permanent nature.

5. In the result, al l the appeals of the assessee are al lowed.
Order Pronounced in the Open Court on 02/09/2021.

Please find attached the enclosed file for the full judgement