TaxTMI 
TaxTMI 
2014 (6) TMI 838
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.... I.T. Act, on the ground of change of opinion." 2. Brief facts re: The assessee is a government of India company, since merged with Steel Authority of India Ltd. The assessee filed its return of income on 28-10-2005 which was assessed u/s 143(3) vide order dated 31- 12-2007. Post assessment consequent to some audit objections communicated by AO, the assessee filed detailed clarifications with assessing officer. Thereafter the assessing officer issued a notice dated 14- 12-2010 for rectification of these mistakes in assessment order. This proposal was objected by the assessee and ld. Assessing officer after hearing assessee vide order dated 7-2-2011 dropped the proceedings. 2.1. Matter did not rest here as, thereafter, again the assessing ....
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....32 to 36. Assessee had also furnished copy of office memorandum dated 25.06.1999 issued by Department of Public Enterprises (OPE) regarding the wage revision w.e.f. 01.01.1997. The AO treated the liability the wage revision provision as contingent and unascertained liability and made additions u/s 37(1) of IT Act for Rs.317.29 crores. The assessee-company was loss making company for many years and started earning profits by 31.03.2005 and became eligible to give effect to wage revision as per DPE guide line during the year ended on 31.03.2005 and accordingly Board of directors decided to provide for wage arrears from 01st January 1997 to 31st March 2005 on the basis of wage scales prevailing in PSU as it became due in the financial year and....
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....ed on valid consideration. 4. Ld. Counsel for the assessee reiterated the facts and contends that all the relevant issues qua which the impugned wage revision (arrears) were raised during the course of original assessment. Specific query regarding the liability of Rs. 317.29 crores regarding wage arrears was also raised, which was duly answered by the assessee consequent to a show cause notice. Thus, the assessment was completed after considering the assessee's explanation allowing the claim of wage revision (arrears) liability. This emerges from AO's order also. The rectification proceedings were preferred only on the basis of an audit objection which was duly replied by the assessee. Consequent to the reply, assessing officer propos....