COMMISSIONER OF INCOME TAX 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 the assessee and against the Revenue. According to the CIT(A), the AO committed an order by including the amount of deprecation of Rs. 2,73,87,218 for the purpose of ascertaining book profits. Accordingly, the CIT(A) directed the AO to exclude the same for the purposes of determination under s. 115J of the IT Act, 1961 (for brevity 'the Act'). The submission made by the assessee -applicant is that the order passed Revenue before the Tribunal.

(2.) COMING to the main appeal, it is pertinent to notice few facts in respect of the asst. yr. 1989 -90. The assessee had Rs. 3,99,31,911 and income under s. 115J of the Act was declared as 'nil'. The AO, however computed profit under s. 115J of the Act at Rs. 4,10,60,334. Accordingly, the AO worked out profit under s. 115J of the Act as under :

(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 vs. Bell Ceramics Ltd. (1999) 64 TTJ (Ahd) 771 : (1999) 69 ITD 156 (Ahd). The view of the Tribunal is discernible from para 17 of the order which reads thus :