PCIT Vs Bhushan Steel Ltd (Delhi High Court)
The Delhi High Court considered two appeals filed by the Revenue under Section 260A of the Income-tax Act, 1961, challenging an order of the Income Tax Appellate Tribunal for AY 2008–09. The Revenue initially proposed six questions. One issue relating to synchronization charges under Section 80-IA was not pressed, as it had already been decided in favour of the Revenue. On another issue concerning an alleged payment of ₹8.40 lakh from undisclosed sources, the Court noted that the addition was based solely on a statement recorded under Section 132(2) that was subsequently retracted, with no corroborative evidence of payment. The Court found the concurrent findings of the Commissioner (Appeals) and the Tribunal to be plausible and declined to frame a question of law.
The Court also rejected Revenue challenges relating to book profits under Section 115JB. It held that Fringe Benefit Tax could not be added to book profits in view of departmental Circular No. 8 of 2005, and that disallowance under Section 14A read with Rule 8D could not be imported into MAT computation, as Section 115JB does not expressly provide for such an adjustment. Relying on the principle that the Assessing Officer cannot go behind the profit and loss account except as permitted by statute, the Court found no substantial question of law on these issues.
