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TMI Blog2024 (8) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... 23rd August, 2012. The order u/s 154 of the Act is, therefore, quashed and set aside by the CIT (A) on the very ground. CIT (A) allowing the appeal filed by the assessee, the revenue preferred [ 2021 (4) TMI 1383 - ITAT AHMEDABAD] - CIT (A) has quashed and set aside the audit objection, admittedly pertaining to the assessment order, which has merged into the order of CIT (A). Therefore, CIT (A) has rightly quashed the order u/s 154 passed by the AO on the ground that there cannot be any mistake apparent on the record in order giving effect dated 23rd August, 2012. In such circumstances, the Tribunal has rightly dismissed the Miscellaneous Application of the petitioner holding that the appeal preferred by the revenue against the appellate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. 3.4 The Assessing Officer passed an order giving effect of the CIT (A) and determined the book profit at Rs. Nil on 23rd August, 2012. 3.5 It is the case of the petitioner Revenue that revenue audit party noticed that waiver of principal amount of loan of Rs.16,17,43,729/- being extra-ordinary item was reduced from book profit. The audit party was of the opinion that exclusion of waiver of principal amount of loan was not in accordance with the provisions of Section 115JB of the Act, hence it was a mistake apparent on record. 3.6 On perusal of the paper book submitted by the petitioner, we could not find the above order passed by the Assessing Officer on 14th December, 2011 as well as order dated 23rd July, 2012 passed by the CIT (A) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eptions provided in the Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. . 3.11 The petitioner Revenue thereafter filed Miscellaneous Application No. 128/Ahd/2021 in ITA No.132/Ahd/2019 on the ground that audit party had raised audit objection which was accepted by the Assessing Officer and thereafter order under Section 154 was passed. It was, therefore, submitted before the Tribunal that the case would fall under the exceptions as mentioned in para-10 of the Circular No. 3/2018 dated 11th July, 2018 and its subsequent amendment dated 20th August, 2018 and O.M. dated 16th September, 2019 to Circular No. 23/2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2012 determining the revised total income at Rs. Nil in view of the appellate order dated 23rd July, 2012 passed by the CIT (A) for the year under consideration. 5.1 It was, therefore, submitted that the Assessing Officer was justified in passing the order under Section 154 of the Act on the basis of the audit objections on 29th March, 2016 which was carried further before the CIT (A) and the Tribunal. Learned advocate Mr. Sanghani submitted that the Tribunal ought to have considered the fact that order under Section 154 of the Act was passed upon the audit objection and accordingly, in the facts of the case, para-10 of the Circular No.3/2018 dated 11th July, 2018 would be attracted and the Tribunal ought to have recalled the order by perm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23/07/2012. While giving effect to the CIT (A)'s order, the Assessing Officer altered the book profit computed as per section 115JB of the Act by making an addition of Rs. 16,17,43,729/- on account of waiver of principal amount of loan. However no such addition was made under the normal provisions of the Act. The rectified book profit was computed as under. Particulars Amount (in Rs.) Book profit as per order u/s 143 (3) r.w.s. 147 of the Act dated 14/12/2011 13,07,83,251 Add: Waiver of principal amount 16,17,43,729 Revised total book profit 29,25,26,980 Less: Unabsorbed depreciation allowed to the extent of Rs. 26,47,30,860 (Relief allowed by CIT (A)) 26,47,30,860 Revised book profit 2,77,96,120 In the present appeal, the appellant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has merged into the order of CIT (A) dated 23rd July, 2012. Therefore, CIT (A) has rightly quashed the order under Section 154 passed by the Assessing Officer on the ground that there cannot be any mistake apparent on the record in order giving effect dated 23rd August, 2012. 7. In such circumstances, the Tribunal has rightly dismissed the Miscellaneous Application of the petitioner holding that the appeal preferred by the revenue against the appellate order before the Tribunal was not in lieu of the audit objection being accepted by the department. Therefore, the case would not fall in the exceptions as provided in clause 10(c) of the CBDT Circular No. 3/2018 requiring withdrawal of the appeal of the petitioner where the tax effect f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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