2019 (4) TMI 1370 - AT - Income Tax

Book profit computation u/s 115JB - A.O. has rejected the revise computation of book profit as the assessee had not claimed the same while filing the original return - CIT(A) also not considering - ITAT powers to admit the grounds otherwise than by filing the original return - HELD THAT - We find that the revised computation of the assessee has been rejected by the A.O. solely on the ground that the assessee has not filed the same in the original return of income. This aspect has been confirmed by the CIT(A). We note that in the case of Goetze (India) Ltd. v. CIT 2006 (3) TMI 75 - SUPREME COURT has expounded that the ITAT has powers to admit the grounds otherwise than by filing the original return. In the present case, in our considered opinion, the revised computation submitted by the assessee does not deserve to be rejected solely on the ground of not filing it along with the original return. Accordingly, in the interest of justice, we remit this issue to the file of the A.O.

Summary

Issues involved:
1. Book profit computation under Section 115JB of the Act
2. Interest under Section 234C of the Act

Book profit computation under Section 115JB of the Act:
The appeal pertains to the assessment year 2012-13 and challenges the order of the Commissioner of Income Tax (Appeals) regarding the computation of book profits under Section 115JB of the Income Tax Act. The appellant submitted a revised computation of book profits during the assessment proceedings, which the Assessing Officer did not consider in the assessment order. The appellant argued that the revised computation was filed before the assessment order was passed. However, the Commissioner rejected the contention, stating that the Assessing Officer had considered the revised computation but rejected it as it was not claimed in the original return. The Commissioner held that the appellant falsely claimed that the revised computation was not considered. The Appellate Tribunal noted that the revised computation was rejected solely on the ground of not being filed with the original return, contrary to the Supreme Court's decision in Goetze (India) Ltd. v. CIT [2006] 284 ITR 323 (SC). The Tribunal remitted the issue back to the Assessing Officer for reconsideration on its merits, allowing the appeal for statistical purposes.

Interest under Section 234C of the Act:
The appellant also contested the Commissioner's failure to direct the Assessing Officer to compute interest under Section 234C of the Income Tax Act correctly. However, the Tribunal's judgment primarily focused on the book profit computation issue, remitting it back to the Assessing Officer for reconsideration. The Tribunal did not provide a detailed analysis of the interest computation issue in the summary provided.

In conclusion, the Appellate Tribunal's judgment addressed the appellant's challenge regarding the book profit computation under Section 115JB of the Act, remitting the issue back to the Assessing Officer for reconsideration. The Tribunal allowed the appeal for statistical purposes, emphasizing the importance of considering revised computations submitted during assessment proceedings.