C I T Vs. PRAKASH INDUSTRIES LTD

JUDGEMENT

(1.) This order shall dispose of Civil Misc. No. 8118 CII of 2010 and Civil Misc. No. 8121 CII of 2010. Both these applications have been filed by the Assessee with a prayer for disposal of IT Appeal Nos. 46 and 47 of 2003 pleading that for the assessment year 1990-91, the Commissioner (Appeals), Rohtak has passed an order in respect assessment year 1990-91 on 4-1-1999 in favour of the Assessee and against the revenue. According to the Commissioner (Appeals), the assessing officer committed an order by including the amount of deprecation of Rs. 2,73,87,218 for the purpose of ascertaining book profits. Accordingly, the Commissioner (Appeals) directed the assessing officer to exclude the same for the purposes of determination under Section 115J of the Income Tax Act, 1961 (for brevity the Act). The submission made by the Assessee-applicant is that the order passed on 4-1-1999 (R. 2) has attained finality in respect of the assessment year 1990-91 as no appeal has been preferred by the revenue before the Tribunal.

(2.) Coming to the main appeal, it is pertinent to notice few facts in respect of the assessment year 1989-90. The Assessee had filed return on 29-12-1989 declaring the income (loss) of Rs. 2,27,31,201 and income under Section 115J of the Act amounting to Rs. 1,60,00,606. However, the return was revised on 22-2-1991 declaring a total income (loss) of Rs. 3,99,31,911 and income under Section 115J of the Act was declared as nil. The assessing officer, however computed profit under Section 115J of the Act at Rs. 4,10,60,334. Accordingly, the assessing officer worked out profit under Section 115J of the Act as under: ------------------------------------------------------------------------------ Profit as per P&L a/c as per original return 53,33,553 ------------------------------------------------------------------------------ Add: Depreciation 7,13,94,144 ------------------------------------------------------------------------------ 7,67,27,697 ------------------------------------------------------------------------------ Less: Depreciation as per Companies Act book profits 3,56,67,363 ------------------------------------------------------------------------------ Book profit 4,10,60,334 ------------------------------------------------------------------------------ Total income under Section 115J 1,23,18,100 ------------------------------------------------------------------------------

(3.) On further appeal by the Assessee, the Tribunal decided the issue in favour of the Assessee by citing the judgment rendered by the Ahmedabad Bench of the Tribunal rendered in the case of Asstt. CIT v. Bell Ceramics Ltd.,1999 64 TTJ 771. The view of the Tribunal is discernible from para 17 of the order which reads thus: