2011 (4) TMI 1399

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....ing and sale of medium density fiber boards and formaldehyde. It filed its return for the Assessment Year under consideration on 28.10.2005 disclosing income at NIL. The case was taken up for scrutiny and the order of assessment was passed on 24.12.2007 computing the total income of the assessee at NIL after adjustment of brought forward losses. The learned CIT found that the assessee is liable for payment of MAT within the meaning of Section 115JB, which has not been considered by the Assessing Officer at the time of making assessment. Therefore, he was of the view that the assessment is prejudicial to the interest of Revenue and accordingly, show-cause notice was issued to the assessee. After hearing the assessee and considering the fa....

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..... He further submitted that all the documents are made available to the Assessing Officer. It disclosed even the aspect of application made by the assessee under BIFR. So, it cannot be said that the Assessing Officer has not considered the impact of MAT imposable u/s.115J of the Act. In that view of the matter, the order passed by the learned CIT is nothing but to make a roving enquiry by the Assessing Officer. The provisions contained in clause (vii) of the Explanation to Section 115JB(2) of the Act states that profits of sick industrial company for the assessment year commencing on and from the assessment year relevant to the previous year in which the said company has become a sick industrial company under sub-section (1) of section 17 o....

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....CIT himself agreed with the contention of the assessee as correct. Having found so, erroneousness of the assessment order as held by the learned CIT is not correct. This is nothing but an order requiring the Assessing Officer to do roving enquiry. Thus, he contended that the impugned order is not at all sustainable for legal scrutiny and requires to be set aside. 5. Contrary to this, the learned DR has supported the impugned order of the learned CIT. 6. On careful analysis of the impugned order in the light of the dictum of Hon'ble Apex Court in the case of Malbar Industrial Co. Ltd. v. CIT (2000) 243 ITR 83, relied on by the assessee and the rival submissions of both the parties, it is found that the assessee has specifically noted w....