TaxTMI 
TaxTMI 
2013 (12) TMI 122
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...., 1961 on 05.03.2008. In the profit and loss account, the assessee company has admitted net income ofRs.9,67,62,083/. However, in schedule I of Computation of income from Business and Profession under column 8 i.e. "Any other income not included in the profit and loss account", the assessee company has deleted a sum ofRs.12,64,99,367/- instead of adding back. In view of above, I have reason to believe that income of the assessee company to the extent ofRs.12,64,99,367/- has escaped assessment within the meaning of section 147 of the I.T. Act, 1961." Assessee submitted the details of Rs. 12,64,99,367/-, considered by the Assessing Officer as "escaped income", which read as under:- a. Profit of sale of investment Rs. 34,45,65,785 b. Less: investment written off Rs. 21,81,18,300 c. Add: Interest considered separately Rs. 1,01,864 d. Less: Loss on sale of fixed assets Rs. 33,376 e. Less: FBT Rs. 16,606 Rs. 12,64,99,367/- Submission of the assessee was that the said amount, was a part of the Profit & Loss account and it was included in its profits. According to assessee, it represented profit on sale of 1,44,500 shares of ....
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....g the order of CIT(Appeals), submitted that it was not a case where assessee had not made a claim in the original return. Taking us through a copy of the return of income for the impugned assessment year, placed at paper-book pages 1 to 21, learned A.R. submitted that assessee had in the Profit & Loss account appended to such return, shown miscellaneous income of Rs. 34,58,73,997/-. After considering the expenditure for the year, the profit before taxation was Rs. 9,67,62,083/-. The said amount was shown in Schedule 1 to the return of income as net profit for the relevant previous year. From the said amount, assessee had deducted Rs. 12,64,99,367/- as "Any other income not included in the Profit & Loss account" ( code 2595) and arrived at NIL income for the impugned assessment year. According to him, the only error committed by the assessee was that the relevant row against which deduction of Rs. 12,64,99,367/- claimed was against code 2595, whereas, it ought have been shown against code 2555. As per learned A.R., just because deducted amount was shown in different row would not mean that there was no claim preferred by the assessee in the original return. Referring to the schedule....
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....gly supporting the order of CIT(Appeals), submitted that a mistake appearing in the return should have been rectified by the assessee by filing a revised return. Section 139(3) of the Act was meant for this. Assessee elected itself not to file a revised return. Once it had not filed a revised return, Assessing Officer has no power to consider a fresh claim made during the course of assessment proceedings. Here, assessee had not made any claim in the original return under Section 10(38) of the Act. The form of returns clearly specify Schedule 13 for showing exempt income. In such Schedule 13, assessee had shown only a single item as exempt, which was agricultural income of Rs.4580/-. Against the column for showing long term capital gains on transactions on which security transaction tax was paid, assessee had shown NIL. Therefore, assessee could not say that there was any claim made by it in the original return under Section 138 of the Act. Just because assessee gave a negative figure under the head " Any other income not included in the Profit & Loss account" forming a part of Schedule 1 of the return, would not mean that it was a claim of exemption under Section 10(38) of the Act.....
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....tion 44AF 2537 NIL (d) Section 44BB 2538 NIL (e) Section 44BBA 2539 NIL (f) Section 44BBB 2540 NIL 9. Balance profit or loss (6) - [(7)+total of (8)(a) to (8)(f)] 2550 96170191 10. Net income included in (9) which is exempt (a) Exempt income (Sch. 13) 2555 4580 (b) Share of income from firm(s) 2556 NIL (c) Share of income from AOP / BOI 2557 NIL 11. Profit or loss (9) - [total of (10)(a) to (10)(c)] 2560 96165611 12. Depreciation debited to profit and loss account included in (11) 2565 2049225 13. Depreciation allowable under the Income-tax Act (Sch. 3) 2570 NIL 14. Profit or loss after adjustment for depreciation (11) + (12) - (13) 2575 98214836 15. Adjustments in accordance with section 28 to 44 2580 NIL 16. Deemed income u/s 33AB/33ABA/35ABB/41/72A/ 80HHD/80-IA 2585 NIL 17. Profit or gains computed u/s 44AD/44AE/44AF/ 44BB/44BBA/44BBB 2590 NIL 18. Any other income not included in profit and loss account 2595 - 126499367 19. ....
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.... - (1) Financial institutions 9540 - (2) Scheduled banks 9545 - (j) Sale of instruments held as investment 9550 344565785 (k) Dividends and interest received other than received by financial enterprises 9555 693758 2. Total [1(a) to 1(k)] 9660 345259541 10. The sale of instruments held as investment was shown by the assessee. No doubt, it might be true that audited Profit & Loss account and Schedules were filed by the assessee only during the course of assessment proceedings, since the return was e-filed. But, Schedule 6 of such audited accounts clearly indicates that assessee had sold substantial number of equity shares in M/s.SICAL during the relevant previous year. The holding had come down 14,45,099 shares to a mere 99 shares by the end of the period. In these circumstances it might be difficult to come to a conclusion that there was no claim in the return at all. 11. Most important fact that we notice is that the assessee had shown ' NIL' income in the return of income. Only addition made by the Assessing Officer was the sum of Rs. 12,64,99,367/-. Had the assessee not claimed such sum either as a deduction or as an e....