M/S YUKEN INDIA LIMITED,KOLAR vs. DEPUTY COMMISSIONER OF INCOME TAX LTU CIRCLE-1, BANGALORE

Date of Hearing : 21-06-2021 Date of Pronouncement : 15-07-2021 ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against the order passed by the Ld.CIT(A)-14, Bangalore for assessment year 2009- 10. 2. It has been submitted that the Ld.CIT(A) passed order on the issues arising out of order section 154 by the Ld.AO.

2.1 He submitted that the Ld.AO passed rectification order as the provision for outstanding derivatives contract written back and the provision for doubtful debts was not added back. This led to the MAT computation for year under consideration. He submitted that assessee should not be penalised for non disclosure of MAT computation for assessment year 2008-09. It was submitted that these pertain to asst. year 2008-09. 2.2 The Ld.CIT(A) while rejecting assessee’s argument was of the view that the provisions disallowed under MAT does not arise for year under consideration, as it pertains to assessment year 2008- 09. 2.3 Aggrieved by the order of Ld.CIT(A) assessee is in appeal before us now. 2.4 The Ld.AR submitted that, provisions for derivative contract was disallowed in the previous assessment year considering it to be contingent liability. He submitted, that during the year under consideration the provision for derivative contract was written back since the same was disallowed and the previous year as a contingent liability. He submitted that, it ought to have been considered as deemed to be disallowed as an ascertained liability in assessment year 2008-09 even under MAT computation and accordingly the same should be reduced while computing the book profits for assessment year 2009-10. 2.5 On the contrary, Ld.Sr.DR submitted that the assessment year 2008-09 is not before consideration and therefore the argument cannot be as appreciated.