Section 115JB, 263 of Income Tax Act, 1961—In the instant case, we note that the assessee has clearly explained that this income was not accounted for in the books of account due to uncertainty. The accounts were duly audited. However, due to abundant caution it was offered in the computation of the normal income. The assessee has further explained that there was uncertainty so it was not accounted for in the books of account which was also accepted by the auditors. Hence, the assessee has not offered the same under MAT provision of section 115JB. From the above, it is amply clear that in the computation of income, the issue was apparent and upon that computation of income, the A.O. has passed the assessment order. Hence, on these facts, it cannot be said that the A.O. has not applied his mind.

A.O. has duly applied his mind and accepted the income offered u/s.115JB which did not include this interest accrued amount as it was not provided in the books of account. Moreover the ld. CIT(A)’s opinion that the book profit needs to be reworked and the impugned amount added to book profit is not sustainable. - Decided in favor of assessee.[TATA REALTY AND INFRASTRUCTURE LIMITED VERSUS PR. CIT-2, MUMBAI] [2018] [7] [ITCD Online] [22] [ITAT MUMBAI]