Case Law Details
ITO Vs M/s. Atria Hydel Power Ltd. (ITAT Bengalore)
Conclusion: Provisions of section 115JB would not be applied to assessee-company where assessee was governed by different Acts and Rules, and was not required to prepare its profit & loss account and balance sheet as per Part II & III of Schedule VI to the Companies Act.
Held: Assessee was a company incorporated under the provisions of the Companies Act 1956. It was engaged in the business of generation and sale of power. Assessee filed the return of income. The assessment was completed under sections 115JB. Assessee-company denied its liability for the assessment of book profit under section 115JB on the ground that the accounts were required to be prepared in accordance with the Provisions of Electricity Act. CIT(A) allowed relief placing reliance on the decision of the Co-ordinate Bench of the Tribunal in the case of Karnataka Power Corporation. It was held since there was no dispute that assessee was engaged in the generation of power and in an electricity company, it was governed by and bound to follow the relevant Electricity Act and Rules thereto in preparation of its financial statements. Where assessee was governed by different Acts and Rules, and was not required to prepare its profit & loss account and balance sheet as per Part II & III of Schedule VI to the Companies Act, the provisions of section 1 15JB could not be invoked against him.
FULL TEXT OF THE ITAT JUDGEMENT
These are appeals filed by the Revenue directed against three different orders of the learned Commissioner of Income Tax (Appeals)-I, Bangalore, all dated 31/10/2017 for the assessment years 2009-10, 2011-12 and 2012-13.
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