KRISH HOMES PVT. LTD. Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The appellant-assessee is aggrieved by the order of the Income Tax Appellate Tribunal ("ITAT") in this appeal under Sec. 260A of the Income Tax Act, 1961 (hereinafter referred as the "Act").

(2.) The question of law urged by the assessee is that the ITAT fell into error in ignoring the Explanation to second proviso of Sec. 115JB(2)(ii) of the Act.

(3.) The relevant facts are that the Assessing Officer brought to tax a sum of Rs.2,43,15,546.00, as income for Assessment Year (AY) 2014-15, as against the return of income filed by the assessee, who had declared loss to the tune of Rs.1,26,493.00. Agricultural income to the tune of Rs.1,40,000.00 was claimed by the assessee. The Assessing Officer was of the opinion that sale of agricultural land, and its exclusion, from the MAT provision had resulted in its exclusion from the calculation of the book profit of the assessee which was wrong. The assessee appealed successfully to the CIT(A), who noted the Sec. 2(14) and Sec. 10(1), which exclude agricultural income. The CIT(A) also relied upon decisions reported as under: