TaxTMI 
TaxTMI 
2012 (9) TMI 357
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....are as follows: 2.1 The Assessee is engaged in the business of banking. The Assessee filed return of income for AY 06-07 declaring nil income under the regular/normal provisions of the Act. The Assessee however was liable to tax u/s.115JB of the Act on book profits. The AO passed an order u/s.143(3) of the Act on 31.1.2008 determining total income under the regular/normal provisions of the Act at Rs.589,84,16,890/- and book profits u/s.115JB of the Act at Rs.185,03,00,106/- and 7.5% tax payable on book profit at Rs.13,87,72,507/-. Since the total income computed under the regular/normal provisions of the Act was more than 7.5% of the book profits u/s.115JB of the Act, the same was adopted for computing tax liability. In this appeal we ar....
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....nd loss account should be adopted at this figure and not as per the profit and loss account prepared under the Companies Act, 1956. This claim of the Assessee was rejected by the AO and CIT(A). b) The second dispute was regarding adding of Expenditure incurred for Earning exempt income of Rs. 1,74,18,095 and Provision for FBT of Rs.20,00,000 to the profit as per profit and loss account to arrive at book profits. This claim of the Assessee for excluding the aforesaid sums while computing book profits was accepted by the CIT(A). 3. The CIT(A) passed the order on 13.1.2010. The AO gave effect to the aforesaid order of the CIT(A) by passing order dated 18.3.2010. 3.1 The CIT, in exercise of his powers of revision u/s.263 of the Act, wa....
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.... AO giving effect to the order of the CIT(A) dated 13.1.2010. The scope of such proceedings can only be restricted to the issue/matters that was considered and decided by the CIT(A). It can be seen from the show cause notice u/s.263 of the Act that the issues with regard to adding Provision for NPA, Provision for Standard Advances and Bad investments written off while computing book profits u/s.115JB of the Act were neither the subject matter of AO's order u/s.143(3) nor the subject matter of the appeal before the CIT(A) or considered in the order of the CIT(A). If that be so, the question would be as to whether the CIT can consider the same in exercise of his powers of revision u/s.263 of the Act. The provisions of Sec.263 of the Act re....
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....elating to any proceeding under this Act available at the time of examination by the Commissioner ; (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal, filed on or before or after the 1st day of June, 1988 the powers of the Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal. (2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. (3) Notwithstanding anything contained in sub-section (2), an order in revision under this section may be pa....