2023 (1) TMI 215 - AT - Income Tax

MAT computation u/s 115JB - provision for additional liability relating to prior as added back to normal income but the same was not added back u/s. 115JB - CIT(A) while deciding the issue in favour of the assessee noted that identical issue arose in assessee s case in A.Y. 2012-13 and deleted the addition made by A.O. - HELD THAT - We find that Ld. CIT(A) while deciding the issue in favour of the assessee had followed the order of his predecessor for A.Y. 2012-13. We further find that against the order of Ld. CIT(A) for A.Y. 2012-13 Revenue had preferred appeal before the Tribunal. The Tribunal vide order 2018 (12) TMI 279 - ITAT DELHI had dismissed the appeal of the Revenue. Before us, Revenue has not placed any distinguishing facts in the case of the assessee and that in the year under consideration and that for earlier years nor has placed any material to demonstrate that the order of Tribunal in assessee s own case for A.Y. 2012-13 has been set aside/ stayed or overruled by higher judicial forum. In view of the aforesaid facts we find no reason to interfere with the order of Ld. CIT(A) and thus the grounds of Revenue dismissed.

Summary

Issues:
1. Assessment under section 147 r.w.s.143 (3) of the I.T. Act, 1961.
2. Validity of notice u/s. 148 of the Act.
3. Denial of revised claim of deduction U/s 80IA.
4. Addition of Rs. 8,13,00,000/- to Book Profits under section 115JB.
5. Charging interest under section 234 D and withdrawal of interest U/s 244A.
6. Application of tax rate @30% instead of 18.5% on Book Profits under section 115JB.

Analysis:

1. The appeal and cross-objection were against the Order of the Ld. CIT(A)-7, New Delhi, relating to the A.Y. 2011-12. The assessee, a public sector undertaking, filed its return of income initially, which was processed under section 143(1). Later, a revised return was filed, leading to a reassessment under section 147 r.w.s.143 (3) of the I.T. Act, 1961. The A.O. determined the total taxable income u/s. 115JB at Rs. 1,24,14,41,441/-. The Ld. CIT(A) granted substantial relief to the assessee, leading to the Revenue's appeal before the Tribunal.

2. The Revenue challenged various aspects, including the validity of the notice u/s. 148, denial of deduction U/s 80IA, addition to Book Profits under section 115JB, interest charges under section 234 D, and the application of a higher tax rate on Book Profits. The A.O. added Rs. 8,13,00,000/- to the Book Profits under section 115JB, which the Ld. CIT(A) later overturned, citing a similar decision in the assessee's case for A.Y. 2012-13. The Tribunal upheld the Ld. CIT(A)'s decision, noting the lack of distinguishing facts or material presented by the Revenue.

3. The Ld. CIT(A) had dismissed the appeal of the Revenue for A.Y. 2012-13, and the Tribunal had upheld this decision. Since the facts of the current case were similar to those of the earlier year, the Tribunal dismissed the Revenue's appeal for the current year as well. The Cross Objection filed by the assessee was also dismissed as it was rendered academic due to the dismissal of the Revenue's appeal.

4. In conclusion, the Tribunal dismissed the appeal of the Revenue and the Cross Objection of the Assessee, upholding the decision of the Ld. CIT(A) for the A.Y. 2011-12.