9911796707
TMI Blog2012 (9) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business of banking. The Assessee filed return of income for AY 06-07 declaring nil income under the regular/normal provisions of the Act. The Assessee however was liable to tax u/s.115JB of the Act on book profits. The AO passed an order u/s.143(3) of the Act on 31.1.2008 determining total income under the regular/normal provisions of the Act at Rs.589,84,16,890/- and book profits u/s.115JB of the Act at Rs.185,03,00,106/- and 7.5% tax payable on book profit at Rs.13,87,72,507/-. Since the total income computed under the regular/normal provisions of the Act was more than 7.5% of the book profits u/s.115JB of the Act, the same was adopted for computing tax liability. In this appeal we are concerned only with the computation of book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompanies Act, 1956. This claim of the Assessee was rejected by the AO and CIT(A). b) The second dispute was regarding adding of Expenditure incurred for Earning exempt income of Rs. 1,74,18,095 and Provision for FBT of Rs.20,00,000 to the profit as per profit and loss account to arrive at book profits. This claim of the Assessee for excluding the aforesaid sums while computing book profits was accepted by the CIT(A). 3. The CIT(A) passed the order on 13.1.2010. The AO gave effect to the aforesaid order of the CIT(A) by passing order dated 18.3.2010. 3.1 The CIT, in exercise of his powers of revision u/s.263 of the Act, was of the view that the aforesaid order of the AO dated 18.3.2010 giving to the order of the CIT(A) dated 13.1.2010 was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue/matters that was considered and decided by the CIT(A). It can be seen from the show cause notice u/s.263 of the Act that the issues with regard to adding Provision for NPA, Provision for Standard Advances and Bad investments written off while computing book profits u/s.115JB of the Act were neither the subject matter of AO's order u/s.143(3) nor the subject matter of the appeal before the CIT(A) or considered in the order of the CIT(A). If that be so, the question would be as to whether the CIT can consider the same in exercise of his powers of revision u/s.263 of the Act. The provisions of Sec.263 of the Act read as follows: "263. Revision of orders prejudicial to revenue.--(1) The Commissioner may call for and examine the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this sub-section and passed by the Assessing Officer had been the subject matter of any appeal, filed on or before or after the 1st day of June, 1988 the powers of the Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal. (2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. (3) Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssues with regard to adding Provision for NPA, Provision for Standard Advances and Bad investments written off while computing book profits u/s.115JB of the Act , is liable to quashed and is hereby quashed. 5. Arguments were advanced before us to say that the order u/s.263 is virtually a revision of the original order of assessment u/s.143(3) of the Act dt.31.1.2008 and the order u/s.263 would be hit by the limitation of time laid down in Sec.263 of the Act. Arguments were also advanced on merits of the addition made by the CIT in the order u/s.263 of the Act. We do not wish to go into those aspects as the plea of the Assessee regarding scope of the proceedings before the AO has been accepted by us and the order u/s.263 of the Act quashed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
