Monday, 14 May 2012

S.115JB:Book profit- Company- Prior period expenses- There is no provision for any

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The Assessing Officer while computing the Book profit added the amount in respect of prior period
expense debited un the profit and loss account. The Commissioner (Appeals) up held the addition. On
appeal the Tribunal held that, there is no provision for any adjustment on account of prior period
expenses in Explanation 1 to section 115JB (2) and therefore any addition on account of disallowance
of prior period expenses while computing book profit is not permitted. (A.Y. 2003-04)
Shivshahi Punarvasan Prakalp Ltd v. ITO ( 2012) 135 ITD 51 (Mum) (Trib)

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