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TMI Blog2023 (10) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... nal return of income was accepted under Meera Jadhav Section 143(1) of the Act. Petitioner paid the tax on the basis of book profits under Section 115 JA of the Act. 2. The reasons in support of the impugned notice proceeds on the basis that an amount of Rs. 17.15 Lacs chargeable to tax has escaped assessment while computing income under the normal provisions of the Act. Petitioner in the objection filed to the impugned notice, inter alia, pointed out that even if the revenue's case as set out in the reasons is accepted there would be no change in the income offered to tax and the tax payable on the book profits in terms of Section 115JA of the Act would be higher than the income computed under the normal provisions of the Act. Besides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings under section 147 shall be dropped on his showing that he had been assessed on an amount or to a sum not lower than what he would be rightly liable for even if the income alleged to have escaped assessment had been taken into account, or the assessment or computation had been properly made. 6. Affidavit of Director of petitioner Leena Kaushik Makhecha affirmed on 5th April 2022 has been filed, wherein it is stated that petitioner had claimed total loss of Rs. 10,73,749/- consisting of business loss of Rs. 7,39,333/- and capital loss of Rs. 3,34,416/- for A.Y.-1999-2000 under the normal provision of the Act and offered to tax book profit of Rs. 1,13,25,826/- and tax there on at Rs. 11,89,213/-. It is also stated that there is no cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not agree with respondent no. 1 that even if, no income had escaped assessment as on the date of the issue of the notice, one had to take into account the position that may arise as a result of further additions that may or may not be made in the final assessment order. Respondent no. 1 should have realised that he had no jurisdiction to proceed on the basis that some hypothetical income may be detected as a result of further investigations that may be conducted. 9. In the recorded reasons, respondent no. 1 has alleged that petitioner has over stated the amount by taking cost of acquisition of the 2,00,000 shares of Gammon India Limited at Rs. 242.01 instead of Rs. 248.88 per share. The fact is, respondent no. 1 has not disputed that in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out that in terms of the reasons recorded, the income chargeable to tax to the extent of Rs. 81,18,000/- has escaped assessment. In the return of income filed by the petitioner, the petitioner has disclosed loss of Rs. 77,51,810/- and the petitioner has been assessed at an income of Rs. 35,96,518/- on the book profit under section 115JB of the Act. It has, accordingly, been contended that even after making the proposed addition, there would be no difference in the taxable income of the petitioner and it will still be governed by the provisions of section 115JB of the Act. 10. The learned counsel for the petitioner has also drawn the attention of the court to the provisions of section 152(2) of the Act, which provides that where an ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d has not challenged the same before the higher forum. The learned counsel for the respondent has urged that the decision requires reconsideration. Having regard to the facts and circumstances of the case, as well as the fact that the revenue has accepted the said decision, the court does not find any reason to refer the matter for consideration to a Larger Bench. 12. In the light of the decision of this court in the case of India Gelatine and Chemicals Ltd. v. Assistant Commissioner of Income Tax (No. 1) (supra), having regard to the fact that even if the entire amount which is proposed to be added by the Assessing Officer is sustained, there would be no addition to the tax liability of the petitioner and the petitioner would still be g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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