2022 (12) TMI 694

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..... he time of making adjustment and even this was explained during the course of rectification proceedings by the assessee. In view of the above, first of all the assessee has offered this in assessment year 2007-08, it cannot be added again and moreover, this being highly contentious issue and debatable whether this is to be assessed in assessment year 2007- 08 or 2009-10, it cannot be rectified while acting u/s.154 of the Act. Hence, we allow the appeal of assessee.
Shri Mahavir Singh, Vice President And Shri Manoj Kumar Aggarwal, Accountant Member For the Appellant : Shri S. Sathyanarayanan, Advocate For the Respondent : Shri D. Hema Bhupal, JCIT ORDER PER MAHAVIR SINGH, VP: This appeal by the assessee is arising out of the order of .....

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..... ing book profit u/s.115JB of the Act. Therefore, the AO carried out this mistake apparent from record and rectified the mistake by making addition of this Rs.99.31 lakh to the returned income of the assessee. Aggrieved, assessee preferred appeal before CIT(A). 4.1 The CIT(A) simpliciter confirmed the action of the AO by observing as under:- "7.1 I have gone through the order of the AO, written submissions and the provisions of the Act. IT has been noticed that the impugned prior year income has been routed through Profit & Loss Appropriation Account only. As per the provisions, adjustment of the prescribed items mentioned in Explanation I will have to be with reference to the net profit as shown in the profit and loss account for the rel .....

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..... fit & loss account for the year ended 31.03.2009, which is enclosed at assessee's paper-book page 74, which shows that prior income of Rs.1 crore is below the line but ld.counsel before us argued that since this income has already been offered in assessment year 2007-08 and paid taxes by filing revised return after survey, said additional income recorded in the books as prior income was to adjust the reserve account in assessment year 2009-10. According to him, if it is brought to tax again it will amount to double taxation. In view of these arguments, ld.counsel stated that this action cannot be done while acting u/s.154 of the Act because this is highly debatable issue. 6. We have gone through the facts and noted that the assessee could .....

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