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TMI Blog2017 (6) TMI 1262X X X X Extracts X X X X X X X X Extracts X X X X ..... see keeping in view the applicability of Rule 8 of the Income Tax Rules, 1962 as well as the involvement of slump sale and this position is clearly evident from the fact that the book profit of the assessee-company at three different stages was worked out by the Assessing Officer at three different figures. The computation part of book profit under section 115JA in so far as the assessee’s case for the year under consideration is concerned thus was highly debatable issue, rectification on which was beyond the scope of section 154 - Decided against revenue - I.T.A. No. 587/KOL/2012 - - - Dated:- 23-6-2017 - Shri P.M. Jagtap, Accountant Member and Shri S.S. Viswanethra Ravi , Judicial Member For the Appellant : Shri R.K. Kureel , JCIT, D.R. For the Respondent : Shri D.S. Damle, FCA ORDER Per Shri P.M. Jagtap, A.M. This appeal filed by the Revenue is directed against the order of the ld. Commissioner of Income Tax (Appeals)-IV, Kolkata dated 08.12.2011. 2. The relevant facts of the case giving rise to this appeal are that the assessee is a Company, which filed its return of income for the year under consideration declaring total income of ₹ 96,03, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g Officer computed the book profit of the assessee-company under section 115JA at the same figure as was computed earlier in the assessment made under section 143(3)/147 vide an order dated 27.12.2005. Against the said order dated 19.11.2008 passed by the Assessing Officer, an appeal was preferred by the assessee before the ld. CIT(Appeals) and while disposing of the said appeal vide an order dated 27.03.2009, the ld. CIT(Appeals) held that the computation of book profit made by the Assessing Officer under section 115JA was beyond the scope of the order passed by him while giving effect to the order of the ld. CIT(A) on 09.04.2008 as there was no such direction given by the ld. CIT(Appeals) in his order dated 09.04.2008 to the Assessing Officer to compute the book profit. The ld. CIT(Appeals) in his order dated 27.03.2009, however, recorded certain observations/findings on the issues raised by the assessee in its appeal relating to the computation of book profit under section 115JA. The Assessing Officer at this stage apparently realized that there was perhaps a mistake in not computing book profit under section 115JA in the fresh assessment made vide an order dated 28.12.2007 pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue relating to computation of book profit being a highly debatable issue was beyond the scope of section 154. The ld. CIT(Appeals) did not find merit in the case of the assessee on this issue. According to him, non-computation of book profit by the Assessing Officer in the order dated 28.12.2007, despite some observations made by him on merit relating to the said computation in the main body of order was a mistake apparent from the record and the Assessing Officer was fully justified in correcting the said mistake by invoking the provisions of section 154. The ld. CIT(Appeals), however, allowed the other claim of the assessee and directed the Assessing Officer to exclude 60% of the profit as agricultural profit while computing the book profit under Clause (ii) of section 115JA of the Act. He also directed the Assessing Officer to allow similar relief to the assessee in respect of interest income. Aggrieved by the order of the ld. CIT(Appeals), the Revenue has preferred this appeal before the Tribunal on the following grounds:- (1) That on the facts and circumstances of the case, ld. CIT(A) has erred in law in directing the AO to apply Rule 8 to the net profit as per P L acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , had raised query during the course of relevant assessment proceedings about computation of book profit and this issue was very much under consideration going by the observations made by him in the main body of the assessment order. He submitted that the Assessing Officer, however, finally omitted to compute the book profit due to oversight and this omission being a clear mistake apparent from record, the same was rightly rectified by the Assessing Officer vide an order passed under section 154. He contended that the computation of book profit may be a debatable issue as sought to be contended by the ld. counsel for the assessee, but the assessee has a right to dispute the same by filing an appeal. 7. In the rejoinder, the ld. counsel for the assessee contended that the issue of book profit under section 115JA involves charging and computation of book profit and since the same are inseparable parts, even if one part is debatable, the entire issue becomes debatable and goes out of the rectification permissible under section 154. 8. We have considered the rival submissions and perused the relevant material available on record. As regards the preliminary issue raised by the ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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