TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 1262
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....sideration declaring total income of Rs. 96,03,528/- under the normal provisions of the Act and book profit of Rs. 64,99,092/- under section 115JA of the Act. In the assessment originally completed under section 143(3)/147 vide an order dated 27.12.2005, the total income of the assessee under the normal provisions of the Act was determined by the Assessing Officer at Rs. 10,78,00,000/- while the book profit under section 115JA was determined by him at Rs. 8,18,91,021/-. 3. Against the order passed by the Assessing Officer under section 143(3)/147, an appeal was preferred by the assessee before the ld. CIT(Appeals). Meanwhile the assessment made by the Assessing Officer under section 143(3)/147 was set aside by the ld. CIT vide his order pa....
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....ls) dismissed the said ground treating the same to be premature. While giving effect to the order of the ld. CIT(Appeals) dated 09.04.2008, vide an order dated 19.11.2008 the Assessing Officer computed the book profit of the assessee-company under section 115JA at the same figure as was computed earlier in the assessment made under section 143(3)/147 vide an order dated 27.12.2005. Against the said order dated 19.11.2008 passed by the Assessing Officer, an appeal was preferred by the assessee before the ld. CIT(Appeals) and while disposing of the said appeal vide an order dated 27.03.2009, the ld. CIT(Appeals) held that the computation of book profit made by the Assessing Officer under section 115JA was beyond the scope of the order passed ....
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.....2009 and the said order of the ld. CIT(Appeals) being in force having not been disturbed by the Tribunal, proceedings initiated by the Assessing Officer under section 154 were untenable. It was also contended on behalf of the assessee that the issue relating to the computation of book profit under section 115JA, in the facts and circumstances of this case, was a debatable issue and the same, therefore, was beyond the scope of rectification permissible under section 154. The Assessing Officer did not find merit in these contentions raised on behalf of the assessee. According to him, there was a mistake in the order dated 28.12.2007 passed by him under section 143(3)/263 in not computing the book profit under section 115JA and the same being....
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.... while computing the book profit under Clause (ii) of section 115JA of the Act. He also directed the Assessing Officer to allow similar relief to the assessee in respect of interest income. Aggrieved by the order of the ld. CIT(Appeals), the Revenue has preferred this appeal before the Tribunal on the following grounds:- "(1) That on the facts and circumstances of the case, ld. CIT(A) has erred in law in directing the AO to apply Rule 8 to the net profit as per P&L account and exclude 60% of such profit for arriving at book profit u/s 115JA since profit on sale of fixed assets is not an agricultural income and in the order u/s 154 dated 17.04.2009 the AO brought out Rs. 2,20,31,606/- from the purview of Rule 8 and taxed under the central ....
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....ly 40% of the profit is to be taken as book profit in the case of tea manufacturing company by treating the balance 60% as agricultural income. He also contended that there was another issue involved in the year under consideration in the case of the assessee relating to slump sale and the same made the computation of book profit more debatable. 6. The ld. D.R., on the other hand, contended that the book profit under section 115JA was required to be computed in the case of the assessee for the year under consideration and there cannot be any doubt about it. He submitted that the Assessing Officer, in fact, had raised query during the course of relevant assessment proceedings about computation of book profit and this issue was very much und....
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....s rectified by the Assessing Officer under section 154 by computing the book profit of the assessee under section 115JA. As rightly contended by the ld. counsel for the assessee in this regard, the issue of book profit under section 115JA involves charging as well as computation and these two parts being inseparable, they cannot be seen in isolation. Even if one of these two parts is debatable, the entire issue relating to book profit under section 115JA becomes debatable. In so far as the first part is concerned, we agree with the contention raised by the ld. D.R. that going by the facts and circumstances of the case as well as the observations made by the Assessing Officer in the main body of his order, the income of the assessee on the b....