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of <h1>ITAT directs reconsideration of jurisdiction, income computation, deferred tax, and MAT adjustments</h1> <h3>M/s. Sportking India Ltd. Versus JCIT, Circle-9(1), New Delhi</h3> M/s. Sportking India Ltd. Versus JCIT, Circle-9(1), New Delhi - TMI Issues:1. Jurisdictional validity of reassessment proceedings under Section 147/148.2. Computation of income under Section 115JB of the Act.3. Addition of deferred tax liabilities and depreciation adjustments to book profit.4. Adjustments to Minimum Alternate Tax (MAT) under Section 115JB.5. Condonation of delay in filing the appeal.Jurisdictional Validity of Reassessment Proceedings under Section 147/148:The appeal challenged the CIT(A)'s order regarding the initiation of reassessment proceedings under Section 147/148. The assessee contended that the proceedings were flawed as statutory conditions were not met, and the reasons recorded for issuing the notice were contrary to facts and vague. The CIT(A) erroneously concluded that all jurisdictional arguments were withdrawn, whereas the assessee had only withdrawn a specific argument. The ITAT held that the issue was not withdrawn entirely and directed the CIT(A) to reconsider the jurisdictional issue before deciding the appeal on merits.Computation of Income under Section 115JB of the Act:The appeal contested the computation of the assessee's income at Rs. 14,75,17,011 under Section 115JB, deviating from the declared book profit of Rs. 2,91,77,210. The CIT(A) upheld the AO's computation, leading to the appeal. The ITAT acknowledged the grounds raised by the assessee and directed the CIT(A) to first address the jurisdictional issue before revisiting the computation of income under Section 115JB.Addition of Deferred Tax Liabilities and Depreciation Adjustments to Book Profit:The CIT(A) made additions to the book profit for deferred tax liabilities of earlier and current years, along with depreciation adjustments. The ITAT noted the contentions raised by the assessee regarding these additions and directed the CIT(A) to reconsider these aspects after resolving the jurisdictional issue.Adjustments to Minimum Alternate Tax (MAT) under Section 115JB:The AO's adjustments to MAT under Section 115JB were challenged by the assessee, arguing that they were not applicable for the assessment year in question. The CIT(A) rejected this contention, leading to the appeal. The ITAT instructed the CIT(A) to review these adjustments after addressing the jurisdictional validity of the reassessment proceedings.Condonation of Delay in Filing the Appeal:The Registry noted a 2-day delay in filing the appeal, which the assessee attributed to logistical challenges beyond their control. The ITAT, considering the bonafide explanation and lack of prejudice to the Revenue, condoned the delay and proceeded to hear the appeal on its merits.This detailed analysis of the judgment highlights the key issues raised in the appeal, the arguments presented by the parties, the errors identified in the CIT(A)'s order, and the directions provided by the ITAT for reconsideration of the jurisdictional aspects before addressing the substantive issues in the case.
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