TaxTMI 
TaxTMI 
2018 (5) TMI 853
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....er section 10A of the Income Tax Act, 1961. The assessee filed return of its income showing total income of Rs. 51,51,190/- after claiming, inter alia, deduction of Rs. 3,52,52,076/- under section 10A of the Act. The said claim for deduction was supported by auditor's certificate in Form 54F and was duly accepted as per intimation issued under section 143(1). Based on a statement made by the auditor, that till the date of signing the report certain amounts against project exports remain unrealized, the Assessing Officer (AO) issued notice under section 148 of the Act. During the course of proceeding under section 147, assessee filed supplementary auditor's report claiming profit from software export at the reduced figure of Rs. 1,56,34,346/....
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....ment under section 147 is for the benefit of the Revenue and not for the assessee; and (ii) in reassessment proceedings, it is not open to an assessee to seek review of the concluded item, unconnected with escapement of income, for the purpose of computation of the escaped income?" Mr. Kundalia, relied on Sun Engineering (supra) to submit that the jurisdiction of the AO was confined to income which had escaped assessment as declared by the Supreme Court. The assessee claimed reduced profit in reassessment proceeding under section 147. Claim of reduced profit had no relation to assessment of escaped income. He relied on the following portions in the judgment as are extracted below: "......The assessee cannot claim recomputation of the inc....
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....an assessee, the same cannot be allowed to be converted as "revisional" or "review" proceedings at the instance of the assessee, thereby making the machinery unworkable." He submitted, Sun Engineering(supra) was applied by a co- ordinate Bench of this Court in the case of CIT v. Keshoram Industries Ltd. reported in (2004) 271 ITR 353. Mr. Khan, learned advocate appearing on behalf of the assessee submitted, Sun Engineering(supra)is not applicable to case of the assessee. Referring to the computation of income in the assessment made under sections 254/143(3)/147, he demonstrated that the purported escaped income was arrived at by reducing the deduction under section 10A, by the amount of sales return, while keeping the net profit at the am....
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....as meaning sometimes "the computation of income", sometimes "the determination of the amount of tax payable" and sometimes "the whole procedure laid down in the Act for imposing liability upon the taxpayer". 15. In the scheme of things, as noted above, the intimation under section 143(1) (a) cannot be treated to be an order of assessment. The distinction is also well brought out by the statutory provisions as they stood at different points of time. Under section 143(1)(a) as it stood prior to 1-4-1989, the assessing officer had to pass an assessment order if he decided to accept the return, but under the amended provisions, the requirement of passing of an assessment order has been dispensed with and instead an intimation is required to b....
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....edit notes issued by the assessee on 29th October,2003. The assessment order made under sections 254/143(3)/ 147 is dated 28th December, 2006. AO issued notice under section 148 based on a statement made by the auditor that till the date of signing of the report certain amounts against project exports remain unrealized. Such unrealized amounts could only mean unrealized amounts of project exports made in the previous year relevant to the assessment year. As a consequence part of the profit booked stood unrealized. Thus far there is no problem but on commencement of proceeding under section 147 the assessee, having suffered sales return in the meantime, accordingly filed supplementary auditor's report claiming profit from software export at....