2017 (1) TMI 812

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....18 lakhs.The Assessing Officer (AO)completed the assessment u/s. 143 (3) of the Act on 09/12/2011, determining the income of the assessee at rupees nil under the normal provisions and at Rs. 311,58,55, 000/- u/s. 115 JB of the Act. 2. Perusal of the assessment records showed that following four items were not created to the P&L account of the assessee i. Interest income on decommissioning fund - Rs. 50.02 Crores ii. Levy for year transferred from sale of decommissioning - Rs. 25.46 Crores iii. Interest income on renovation and modernisation fund(R&M Fund) -Rs. 10.46 Crores iv. Interest income on research and development(R&D) - Rs. 23.24 Crores     Rs. 109.31 Crores.   He f....

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....pment was erroneous and was prejudicial to the interest of revenue. Setting aside the order of the AO, the CIT directed him to that back the above items to the profit as per the P&L account to arrive at the book profit u/s. 115 JB of the Act. 3. During the course of hearing before us, the Authorised Representative(AR) contended that the assessee had furnished all the documents called for by the AO during the assessment proceedings, that the AO had applied his mind while computing the income under the normal provisions as well as u/s. 115 JB of the Act, that the AO had issued a notice u/s. 154 of the Act on 15/05/2012 wherein he had asked the assessee as to why remedial action should not be taken for computing the income under the MAT pro....

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....er on he issued a notice u/s. 154 of the Act for including the said items, the CIT had issued a notice u/s. 263 of the Act, that he directed the AO to recompute the income under the MAT provisions and to include the above items.We find that while completing the original assessment the AO had called for details of 115 JB computation in the notice issued u/s. 142 (1) of the Act and the assessee had filed the requisite details (Pg. 7,10-13 of the paper book). After considering the available material the AO had passed the original order. Not only this, later on he issued a notice u/s. 154 to include the same items for computing book profit, that the assessee had filed detailed reply in that regard. In the circumstances,we are of the opinion tha....

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....having been properly maintained in accordance with the Companies Act.The Assessing Officer, thereafter, has the limited power of making increases and reductions as provided for in the Explanation to section 115J . The Assessing Officer does not have the jurisdiction to go behind the net profits shown in the profit and loss account except to the extent provided in the Explanation. The use of the words "in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act" in section 115J was made for the limited purpose of empowering the Assessing Officer to rely upon the authentic statement of accounts of the company. While so looking into the accounts of the company, the Assessing Officer has to accept the authenticity ....