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TMI Blog2022 (5) TMI 941X X X X Extracts X X X X X X X X Extracts X X X X ..... said documents been duly furnished before the AO vide Annexure-2 and Annexure-3A of the submission dated May 30, 2013. Thus, in the present case, there is no failure on the part of the Appellant to file its Return of Income. Further, the Appellant has disclosed fully and truly all material facts necessary for his assessment. The facts have been duly disclosed in the Tax Audit Report and vide the Profit and Loss Account. Hence keeping in view the proviso to the section 147, the reassessment proceedings initiated under section 147 of the Income Tax Act 1961 beyond a period of four years are bad in law and deserve to be quashed. Appeal of assessee allowed. - ITA No.5784/Del/2018 - - - Dated:- 9-5-2022 - Sh. A.D. Jain, Vice President And Dr. B. R. R. Kumar, Accountant Member For the Assessee : Sh. K.M. Gupta, Adv. For the Revenue : Ms. Shweta Yadav, Sr. DR ORDER PER DR. B. R. R. KUMAR, ACCOUNTANT MEMBER: The present appeal has been filed by the assessee against the order of the ld. CIT(A)-1, Gurgaon dated 25 .06.2018. 2. The assessee has raised following grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a ( STPI ) Scheme. For the A.Y. 2010-11, the Company filed its return of income on September 30, 2010 vide acknowledgment no. 164722501300910 declaring the total income of Rs.2,76,18,542/-. Thereafter, the case of the Appellant was selected for scrutiny proceedings by issuance of notice under section 143(2) of the Act. During the course of assessment proceedings, various details/ information were called for vide questionnaire issued under section 142(1) of the Act dated November 02, 2012 and February 28, 2014 in response to which the Appellant had furnished all the relevant details. The Appellant vide submission dated May 30, 2013 submitted the computation of income including the MAT ( Minimum Alternative Tax ) computation under section 115JB of the Act, Form 29B and tax audit report (TAR). 4. The assessment was concluded by the Deputy Commissioner of Income-tax, Circle 3 (1), Gurgaon vide assessment order dated January 30, 2015 under section 143(3) of the Act, post the directions of Hon ble Dispute Resolution Panel, at an assessed income of Rs.25,97,19,407/- by making an addition of Rs.23,21,00,865 /- on account of Transfer Pricing (TP) adjustment to the returned income. 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Heard the arguments of both the parties and perused the material available on record. Reasons recorded by the AO dtd 31. 03. 2017 The assessee company has fi led its return of Income of Rs. 5,87,11,470/- on 01.10.2010. Subsequently, the assessee has revised its return declaring income of Rs. 5,90,68,400 /- on 28.03.2012. The assessment u/ s 143 (3) r. w. s. 144 C of the IT Act was completed on 30.01.2015 at Rs. 24,37,14,622 /-. From the perusal of the assessment records it is revealed that the assessee has shown book profit of Rs, 266170439 /- u/ s 115 JB of the IT Act and paid taxes under MAT during the F. Y. 2009 - 10 relevant to A. Y. 2010 - 11. The Book Profit should be computed as per Explanation (1) under sub section (2) of section 115 JB of the Act. As per Form 29 B, books profit of the Assessee Company has been computed at Rs. 266170439 /- whereas, the book profit of the Assessee Company as per explanation (1) under sub section (2) of section 115 JB was 293658603 /-. Therefore, an amount of Rs. 2, 74, 88, 169 (293658630 - 266170439) needs to be added back to the total income u/ s 115 JB of the IT Act under MAT. In view of the above, I have reason to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or revision, which is chargeable to tax and has escaped assessment. Explanation 1 .- Production before the Assessing Officer of account books or other evidence from which material evidence could with due diligence have been discovered by the Assessing Officer will not necessarily amount to disclosure within the meaning of the foregoing proviso. Explanation 2.- For the purposes of this section, the following shall also be deemed to be cases where income chargeable to tax has escaped assessment, namely :- (a) where no return of income has been furnished by the assessee although his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income- tax ; (b) where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return ; (ba) where the assessee has failed to furnish a report in respect of any international transaction which he was so required und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be said to be embedded under any other expense. 15. Facts regarding disallowance of prior period expenses amounting to Rs.1,08,63,174 /- and MAT. Whether the assessee disclosed fully and truly all material facts necessary for the assessment: 16. During the subject assessment year, the assessee has debited prior period expenses amounting to Rs.1,08,63,174 /- to its profit and loss account to arrive at the net profit for the year under consideration, in accordance with the provisions of Accounting Standard - 5.In computing the book profits for the purposes of Minimum Alternate Tax ( MAT ) computation, the Appellant had considered the net profit after deduction of prior period expense and computed profits as per of section 115JB of the Act. The AO disallowed the deduction of prior period expenses in computation of the book profits on the contention that the book profits are to be calculated only on the basis of current year operational profits. In the reasons recorded, the AO stated that an amount of Rs.2,74,88,169/- needs to be added back to the book profits computed under section 115JB of the Act and that Appellant has failed to disclose his income fully and truly and all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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