2015 (1) TMI 46

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....CIT(A) erred in deleting the addition made by the AO while computing the book profit u/s. 115JB of the I.T. Act on account of interest accrued but not paid by the assessee. 3. In the Cross objection the assessee has contended that Ld. CIT(A) erred in holding that the notice under section 148 issued in this case was illegal, void and without jurisdiction and barred by limitation and accordingly, assessment order passed on the foundation of such notice was liable to be quashed. Assessee's Cross Objections 4. In both these cases original assessment was completed under section 143(3) of the I.T. Act. Subsequently, notice under section 148 was issued, after expiry of 4 years from the end of the relevant assessment year. In these circumstances....

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.... under sub-section(3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four year from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section(1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year." 7. Thus, it is evident that the reopening cannot be resorted to where the assessment has been framed under section 143(3) of the I.T. Act, after the expiry of 4 yea....

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....urther information has come to the notice of the AO other than that filed by the assessee in the return. AO by only referring to the assessee's returns has now come to the conclusion that there is omission in the assessment. In the reasons, it has been noted that while working out income under MAT u/s. 115JB, the AO reduced interest accrued from banks amounting to Rs. 1,71,77,395/- for the F.Y. 2003-04, being not provided in the books. However, the amount of interest, forming part of total income, should have been included in the total income while calculating income u/s. 115JA of the Act, 1961. Thus, in the reasons recorded, Revenue has itself accepted that on the basis of the returns submitted by the assessee and disclosure made therein, ....