DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(1)(1), KANPUR, KANPUR vs. JAGRAN PRAKASHAN LIMITED, KANPUR

ITA 381/LKW/2025Status: DisposedITAT Lucknow09 June 2026AY 2015-1618 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that both the AO and CIT(A) erroneously assumed the assessee maintained accounts on the accrual basis. The assessee claimed to follow the cash system, which is contrary to the Companies Act requirement for mercantile accounting. Therefore, the issue of book profit calculation under Section 115JB needed fresh examination.

What were the facts?

The Assessing Officer (AO) added accrued interest on unsecured loans to the assessee's total income while computing book profit under Section 115JB. The Commissioner (Appeals) deleted this addition, holding that the AO could not make such adjustments. The Revenue appealed this decision.

What were the issues?

Whether accrued interest on unsecured loans can be added to book profit under Section 115JB when the assessee claims to follow the cash system of accounting, which contradicts mandatory accounting standards for companies.

Which sections of the Income-tax Act were involved?

Section 115JB,Section 145,Section 142(2A)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW BENCH ‘A’, LUCKNOW

Before: SHRI KUL BHARAT, VICE- & SHRI ANADEE NATH MISSHRA

For Appellant: Shri Vachaspati, CIT-DR

PER ANADEE NATH MISSHRA:A.M.

(A) The present appeal has been filed by Revenue against the impugned appellate order of learned CIT(A)/ National Faceless Appeal Centre (NFAC), Delhi dated 21.03.2025, for the AY 2015-16. The Revenue has raised the following grounds of appeal:

1.

The Ld. CIT(A) has erred in law and facts in excluding interest on unsecured loan of Rs.3,84,75,081/- while computing book profit u/s 115JB.

1.2.

The Ld. CIT(A) has erred in law and facts by not appreciating that the assessee company has prepared the accounts on Mercantile basis and all the income accrued and expenses payable has to be accounted for on accrua

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 115JB

All 5,494 judgments and leading authorities on Section 115JB →

Recent GST High Court judgments

Search GST case law →