(Per : HONOURABLE MR.JUSTICE V. M. SAHAI) 1.0 We have heard Mr. M. R. Bhatt, learned senior standing counsel assisted by Mrs. Mauna Bhatt, learned counsel appearing for the Revenue.
2.0 This tax appeal has been filed on the following proposed substantial questions of law.
“ Whether the Appellate Tribunal has substantially erred in law in holding that adjustment in book profit could not be made by including disallowance of interest expenses and prior period expenses while computing book profit u/s.115JB?”
3.0 The Commissioner of Income Tax has allowed deduction with regard to interest, expenses and prior paid expenses while computing book profit. The Tribunal relied on the decision reported in Commissioner of Income Tax vs. Khaitan Chemicals And Fertilizers Ltd. [307 ITR 150] wherein it has been held that net profit for the purpose under Section 115J was to be computed only after deducting the prior period expenses/extra ordinary items. On the basis of ratio of Khaitan Chemicals And Fertilizers Ltd (supra) the Tribunal has dismissed the Second Appeal filed by the Revenue.
4.0 We are in agreement with the view taken by the Tribunal. In that view of the matter, no substantial question of law arises for consideration of this Court in the present appeal. This tax appeal is meritless. Hence it is dismissed accordingly .
[V. M. SAHAI, J.] Amit [N. V. ANJARIA, J.]