Allowing the appeal the Court held that the order of the Tribunal confirming the proposal was also hyper-technical. The Tribunal had proceeded on the assumption that there was a profit and loss appropriation account which was erroneous as there was no such account in the financials produced before the court. The Tribunal was not right in holding that the prior-period expenses could not be reduced from the book profits computed under section 115JA. (AY. 1998-99)
Ramakrishna Mills (CBE) Ltd. v. JCIT (2025) 476 ITR 161 /173 taxmann.com 918 (Mad) (HC)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-
book profits-Prior-period expenses-Hyper-technical Revision order directing addition of such amount in book profits, unsustainable-Order of Tribunal was set aside. [S. 115JA,260A]
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