2019 (4) TMI 1370 - AT - Income Tax

Appellate Tribunal remits book profit computation issue under Section 115JB for reconsideration, emphasizing revised computations.

The Appellate Tribunal remitted the issue of book profit computation under Section 115JB of the Income Tax Act back to the Assessing Officer for ... Revised computation of book profit under section 115JB - rejection for non-filing with original return not sustainable - power to admit grounds after filing of return (Goetze principle) - remand for fresh consideration on meritsRevised computation of book profit under section 115JB - rejection for non-filing with original return not sustainable - remand for fresh consideration on merits - Whether the revised computation of book profit filed during assessment proceedings could be rejected solely because it was not claimed in the original return and whether the matter should be remitted to the Assessing Officer for fresh consideration on merits. - HELD THAT: - The Assessing Officer refused to accept the assessee's revised computation filed on 22/01/2015 on the sole ground that it had not been claimed in the original return, and the ld. CIT(A) upheld that rejection (paras 6.2-6.3). The Tribunal noted that the power to admit grounds or revised computations notwithstanding their absence from the original return has been recognised by the Apex Court in Goetze (India) Ltd. The Tribunal held that rejection solely for non-filing with the original return is not sustainable and, in the interest of justice, remitted the matter to the file of the AO with a direction to consider the revised computation on merits. [Paras 6, 7]The rejection of the revised computation solely because it was not made in the original return is set aside and the matter is remitted to the Assessing Officer to consider the revised computation on merits.Final Conclusion: The assessee's appeal is allowed for statistical purposes; the question of the revised book-profit computation under section 115JB is remitted to the Assessing Officer for fresh consideration on merits. Issues involved:1. Book profit computation under Section 115JB of the Act2. Interest under Section 234C of the ActBook profit computation under Section 115JB of the Act:The appeal pertains to the assessment year 2012-13 and challenges the order of the Commissioner of Income Tax (Appeals) regarding the computation of book profits under Section 115JB of the Income Tax Act. The appellant submitted a revised computation of book profits during the assessment proceedings, which the Assessing Officer did not consider in the assessment order. The appellant argued that the revised computation was filed before the assessment order was passed. However, the Commissioner rejected the contention, stating that the Assessing Officer had considered the revised computation but rejected it as it was not claimed in the original return. The Commissioner held that the appellant falsely claimed that the revised computation was not considered. The Appellate Tribunal noted that the revised computation was rejected solely on the ground of not being filed with the original return, contrary to the Supreme Court's decision in Goetze (India) Ltd. v. CIT [2006] 284 ITR 323 (SC). The Tribunal remitted the issue back to the Assessing Officer for reconsideration on its merits, allowing the appeal for statistical purposes.Interest under Section 234C of the Act:The appellant also contested the Commissioner's failure to direct the Assessing Officer to compute interest under Section 234C of the Income Tax Act correctly. However, the Tribunal's judgment primarily focused on the book profit computation issue, remitting it back to the Assessing Officer for reconsideration. The Tribunal did not provide a detailed analysis of the interest computation issue in the summary provided.In conclusion, the Appellate Tribunal's judgment addressed the appellant's challenge regarding the book profit computation under Section 115JB of the Act, remitting the issue back to the Assessing Officer for reconsideration. The Tribunal allowed the appeal for statistical purposes, emphasizing the importance of considering revised computations submitted during assessment proceedings.