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TMI Blog2024 (11) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... y of appeal or revision. Thus, the scope and powers of the AO are quite wider and he can even amend its earlier order suo-moto as well as on an application so moved for such rectification. Herein it is a case which was taken up for scrutiny by the AO and an order has been passed subsequently. At this stage, the AO could have examined the position of law and as per existing law, the deductions from the book profits for the purpose of calculation of MAT liability could have been waived and as noticed by the ITAT in its order, the inadvertent mistake occurred on account of misinterpretation, can always be corrected. It is not a case where any new facts or accounts have been introduced in the books of accounts. The ITAT has factually examined t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the application under Section 154 of the Act, 1961. It is submitted that the powers under Section 154 of the Act, 1961, are limited and the assessee ought to have filed a revised return and not correction in the original return already filed with regard to the amount deducted in the books of account under the head Patents IPR Technologies . Learned counsel submits that merely because the judgment passed by the Karnataka High Court was affirmed by the Hon ble Supreme Court by dismissal of the LPA of the revenue, the assessee could not have moved application U/s 154 of the Act, 1961 on account of the interpretation of the law as taken by the Karnataka High Court relating to Section 115J and 115JB of the Act, 1961. 4. We have carefully ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2015. However, the Assessing Officer, rejected the rectification application on the ground that it would amount to fresh determination of facts. Whereafter, an appeal was preferred to CIT(A), which was disposed vide order dated 13.06.2017, remanding the matter to the Assessing Officer for passing a fresh speaking order. Against the order of the CIT (Appeals), an appeal was preferred by both the revenue as well as assessee and the ITAT vide its order dated 22.01.2018, remand the matter back to CIT (Appeals) with a direction to adjudicate the matter afresh. The CIT (Appeals) dismissed the appeal of the assessee vide order dated 02.09.2019. An appeal was thus, again preferred before the ITAT, where in, the impugned order has been passed. 6. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment or reducing a refund or otherwise increasing the liability of [the assessee or the deductor] [or the collector], shall not be made under this section unless the authority concerned has given notice to [the assessee or the deductor] [or the collector] of its intention so to do and has allowed [the assessee or the deductor] or the collector] a reasonable opportunity of being heard. (4) Where an amendment is made under this section, an order shall be passed in writing concerned. By the income-tax authority (5) Where any such amendment has the effect of reducing the assessment or otherwise reducing the liability of the assessee or the deductor [or the collector], the Assessing Officer shall make any refund which may be due to such assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and in relation to any matter other than the matter which might have been so considered by way of appeal or revision. 8. Thus, the scope and powers of the Assessing Officer are quite wider and he can even amend its earlier order suo-moto as well as on an application so moved for such rectification. 9. Herein it is a case which was taken up for scrutiny by the Assessing Officer and an order has been passed subsequently. At this stage, the Assessing Officer could have examined the position of law and as per existing law, the deductions from the book profits for the purpose of calculation of MAT liability could have been waived and as noticed by the ITAT in its order, the inadvertent mistake occurred on account of misinterpretation, can always ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r expenses in respect of non-recurring transactions or transactions of an exceptional nature, the whole of the revenue expenditure incurred by the assessee amounting to Rs. 35,67,94,891/- (and not just a part thereof as shown currently at Rs. 1,53,13,959/-) during the previous year has to be reduced while calculating the net profit. There is no concept of part recognition of Schedule VI of the Companies assessee has debited a part of revenue expenditure in Part II Act, and therefore, where the the revenue expenditure in the profit/loss account, the profit/loss account so prepared is not in accordance with Part II Schedule VI of the Companies Act and has apparently been done for presentation to and consumption of the shareholders. 31. We the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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