2013 (1) TMI 962 - AT - Income Tax

Summary

Issues involved: Appeal against the order of the Commissioner of Income-tax (Appeals) regarding the assessment year 2009-2010.

Grounds raised by Revenue:
1. The CIT(A) order is erroneous in law and on facts.
2. CIT(A) erred in holding book profit u/s. 115JB as NIL, resulting in no tax payable u/s. 115JB.
3. CIT(A) should have considered lack of evidence regarding the assessee's status as a sick industrial company.
4. CIT(A) erred in allowing additional evidence under Rule 46A of I.T. Rules.
5. CIT(A) did not provide an opportunity to the Assessing Officer to respond to the applicant's submissions.

Judgment Details:
The Assessing Officer processed the assessee's return under S.143(1) of the Income-tax Act, determining deemed income under S.115JB at Rs. 69,19,580. The CIT(A) found the issues dealt with by the Assessing Officer to be debatable and not suitable for S.143(1) processing. Referring to S.115JB(2) and Explanation (1) to S.115JB(2), the CIT(A) noted the assessee's status as a sick company with negative net worth, thus excluding the applicability of S.115JB. The appeal of the assessee was allowed based on this observation. The Tribunal upheld the CIT(A)'s decision, stating that the Assessing Officer cannot address debatable issues under S.143(1) and rejected the Revenue's grounds. Consequently, the Revenue's appeal was dismissed.

Decision:
The Tribunal upheld the CIT(A)'s decision, rejecting the Revenue's grounds and dismissing the appeal.