9911796707
TMI Blog2023 (7) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... ered and decided by the appellate/revisional authority. In the instant case, since the issue of diminution in value of an asset for calculating book profit was not a subject matter of appeal or revision, the original order u/s 143(3) of the Act dated 27/02/2004 is the order which can be rectified by the AO and since the order passed in 2004 cannot be rectified after a period of 4 years, the order passed under Section 154 of the Act dated 29/03/2014 is barred by Section 154(7) of the Act. - INCOME TAX APPEAL NO. 409 OF 2018 - - - Dated:- 28-6-2023 - K.R. SHRIRAM, AND FIRDOSH P. POONIWALLA,JJ. For the Appellant : Mr. Suresh Kumar. For the Respondent : Mr. P.J.Pardiwala, Sr. Advocate a/w Mr. Jeet Kamdar i/b Mr.Atul K. Jasani. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009 giving effect to ITAT s order in department s appeal in which he determined the total income in accordance with the normal computation at nil but increased the book profit to Rs. 33,51,66,399/- on account of change in deduction that he allowed under Section 80HHC of the Act. 4. On 29/03/2014, the AO passed an order under Section 154 of the Act rectifying the order dated 13/04/2009 and redetermined the book profit at Rs. 53,02,83,061/- as he added the provision for depreciation in the value of the long term investment as a consequence of the retrospective amendment introduced by the insertion of clause (i) to Explanation 1 below Section 115JB(2). 5. This was challenged by respondent in an appeal before CIT(A). CIT(A) allowed respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in holding that the rectification order u/s. 154 of the I.T. Act passed on 29.03.2014 is barred by time limitation within meaning of section 154(7) of the I.T. Act ? (c) Whether on the facts and in the circumstances of the case and in law, the Hon ble Tribunal was justified in distinguishing the judgement of the Hon ble Apex Court in the case of Hind Wire Industries Ltd with the present case ? 7. Mr. Suresh Kumar submitted, adopting what was submitted before the ITAT, even though the order giving effect to the ITAT s order dated 13/04/2009 was passed by the AO to give effect to the express directions of the ITAT, the fact remained that the AO was required to determine the correct total income as per the provisions of the Act. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he judgment of the Apex Court in CIT Vs. Alagendran Finance Ltd. (2007) 293 ITR 1 (SC) He added, ITAT has after hearing the parties, correctly come to the conclusion that when the issue that was sought to be rectified was never the subject matter of the appeal either before the CIT(A) or before the Tribunal, it was not permissible for the AO to rectify under Section 154. 9. Therefore, the settled position is that the AO, while giving effect to the ITAT s order cannot go beyond the directions of the ITAT and since in this case, the issue of calculation of book profit qua diminution in the value of an asset was not the subject matter of the appeal, the Revenue was not justified in contending that the order is within the time limit ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
