- (1.) The appeal is directed against a judgment and order dated January 7, 2011, passed by the learned Income Tax Appellate Tribunal, B Bench, Kolkata in ITA No. 1254/Kol/2010, pertaining to the assessment year 2006-07, by which the learned Tribunal allowed an appeal preferred by the revenue. The aggrieved assessee has come up in appeal.
(2.) The following questions of law were formulated on June 16, 2011, when the appeal was admitted: (i) Whether the learned Tribunal below committed substantial error of law in reversing the finding of the Commissioner of Income Tax (Appeals) to the effect that in computing the book profit for assessment year 2001-02 the provision so debited was not allowed as a deduction and thereby the book of profit under Section 115JB for the year ended 31.03.2001 was increased by the amount of the provisions and in the light of Clause (i) of Explanation to Section 115JB, the amount of Rs. 1,30,53,000/- withdrawn from the provision of diminution in value of investment was required to be released from the net profit to arrive at book of profit under Section 115JB assessing it to be based on incorrect facts. (ii) The assessing officer not having allowed deduction for provision for diminution in value of investment amounting to Rs. 7,05,73,000/- in the Profit and Loss Account for the year ended 31.03.2001 in computing the book profit for the assessment year 2001-02, whether the learned Tribunal below committed substantial error of law in passing the order impugned by setting aside the order passed by the Commissioner of Income Tax(Appeals).
(3.) The facts of the case, briefly stated, are as follows.;