Case Law Details
DCIT Vs Yahoo Software Development Private Limited (ITAT Bangalore)
Assessing Officer tinkered the book profit by adding the additional revenue on account of subsequent realization of export, while computing the book profit u/s 115JB of the Act. The assessee has revised the return of income by including the additional revenue in its total income. However, the assessee did not modify the book profit u/s 115JB of the Act. The Assessing Officer re-computed the book profit by adding the additional income on account of subsequent realization of export profit. In our opinion, the Assessing Officer cannot tinker the book profit, in such cases where the additional revenue was not shown by the assessee in the books of account, as held by the Hon’ble Supreme Court in the case of Apollo Tyres Limited v. CIT [(2002) 255 ITR 273 (SC)].
Assessing Officer while computing the income under section 115J has only the power of examining whether the books of account are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act. The Assessing Officer thereafter has the limited power of making increase and reductions as provided for in the Explanation to the said section. To put it differently, the Assessing Officer does not have the jurisdiction to go behind the net profit shown in the profit and loss account except to the extent provided in the Explanation to section 115J.
FULL TEXT OF THE ITAT JUDGEMENT
These are cross appeals arising out of the order of the CIT(A), Bangalore, dated 04.09.2017, and they relate to the
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