ITAT directs AO to re-compute book profit u/s 115JB of  Income Tax  Act by giving  opportunity of being heard to assessee [Read Order]

The two member bench  of  Income Tax Appellate Tribunal (ITAT) Delhi bench directs assessing officers to re-compute book profit under Section 115JB of the Income Tax Act, 1961  by giving the opportunity of being heard to assessee.

The assessee The Oriental Insurance Co. Ltd   is engaged in the business of General Insurance. Who filed the appeal against the order of  Commissioner of Income Tax (Appeals) for Assessment Years 2014- 15 and 2015-16 respectively. During the assessment proceedings the AO computed the income of the assessee under section 115JB of the Income Tax Act without appreciating that provisions of Section 115JB are not applicable.

Aggrieved by the order, the assessee filed an appeal before the CIT(A) , who allowed the appeal.Therefore the assessee filed a second appeal before the tribunal.

After Reviewing the facts  the two-member bench Of Yogesh Kumar U.S (Accountant member) and Narendra Kumar Billaiya,(Accountant Member) directed the AO to re-compute the book profit under Section 115JB of the Income Tax  Act by giving reasons for making adjustment and giving an opportunity of being heard to the assessee.

Tarandeep Singh, counsel appeared for assessee and  Sanjay Gupta appeared for the revenue.

Also read: Incorrect adding of additional Depreciation to Computation of Book Profit: ITAT directs AO to delete addition u/s 115JB of Income Tax Act

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