2015 (2) TMI 808

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....mpany registered under the Companies Act, 1956, and is assessed to tax regularly. For the assessment year 1998-99, the petitioner filed its return of income on November 27, 1998. Such return was taken in scrutiny. The Assessing Officer framed scrutiny assessment on September 14, 2000. The assessee had declared loss of Rs. 1.44 crores (rounded off) after availing of various deductions, depreciations and exemptions. The Assessing Officer computed the petitioner's total income at Rs. 2.89 crores (rounded off) under section 115JA of the Act and taxed the petitioner accordingly. 2.2. It is this scrutiny assessment, which the returning officer seeks to reopen in which the impugned notice within a period of four years from the end of relevant....

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.... the assessee-company personally." 2.3. The petitioner thereupon filed the petition challenging the notice itself. 3. Learned counsel, Shri Manish Shah, for the petitioner raised two contentions. Firstly, he submitted that the ground on which the Assessing Officer desires to tax the petitioner's income is not valid. Drawing our attention to the reasons recorded, he submitted that the reference is to paragraph 5(C) of the annual report and not paragraph 5(B) as erroneously typed in the reasons recorded. It is in paragraph 5(C) that the amount of Rs. 116.86 lakhs is reflected and charged to the revenue account. In this context, the objection of the Assessing Officer is that such amount is not to be allowed in the revenue account by virt....

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....d, learned counsel, Shri Bhatt, for the Revenue opposed the petition contending that the decision of the Supreme Court cited by the petitioner would not cover the present situation and further that whether income chargeable to tax has escaped assessment or not cannot be considered at this stage and no conclusive opinion can be rendered. The Assessing Officer must be allowed to carry out reassessment. 5. In our opinion, on both counts the petition must succeed. 6. On the first aspect, we notice that it is wrongly referred to in the reasons recorded as paragraph 5(B) of the annual report of the company, the correct reference would be to paragraph 5(C) where there is a reference to a sum of Rs. 116.86 lakhs which was charged by the assessee ....

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....hange, whereas under the amended section 43A, the adjustment in the actual cost is made on cash basis. In other words, under the unamended section 43A, 'actual payment' was not a condition precedent for making necessary adjustment in the carrying cost of the fixed asset acquired in foreign currency but under the amended section 43A, with effect from April 1, 2003, such payment of the decreased/enhanced liability on account of fluctuation in foreign exchange rate has been made a condition precedent for making adjustment in the carrying amount of the fixed asset. We are of the opinion that the decision of this court in Woodward's case (supra) settles the second issue as well. We respectfully concur with the same and hold that all....