TaxTMI 
TaxTMI 
2018 (8) TMI 1780
X X X X Extracts X X X X
X X X X Extracts X X X X
....tered under the Companies Act and is engaged in the business of infrastructure development. For the assessment year 2012-2013, the petitioner had filed return of income on 27.9.2012 declaring loss of 3.92 crores (rounded off). The return was scrutinized by the Assessing Officer during which process various queries were raised and answered by the petitioner. The Assessing Officer passed the order of assessment under section 143(3) of the Act on 28.1.2015. Subsequently, the Assessing Officer issued the impugned notice. Reasons recorded by him for issuing the notice read as under : "2. In the Note 2.10 of Notes to Accounts annexed to the Audit Report, the company had given following description: Grants and subsidies from the government are r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me for A.Y.2012-13, it was noticed that the company had shown Book Profit u/s. 115JB for the year under consideration at () Rs. 5,71,43,911/. As such, the above amount of Rs. 9,17,86,000/was not considered for computation of book profit u/s 115JB as the same was directly transferred to capital reserve account in the balance sheet in contravention to its stated accounting policies. 4.1 The company is bound to disclose in the profit & loss account the said amount as non recurring transaction or a transaction of an exceptional nature irrespective of its being capital or revenue in nature. It would be inappropriate to directly transfer such amount to capital reserve. Such receipts are also covered by clause 2(b) of Part-II of Schedule VI of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act. In the opinion of the Assessing Officer therefore, such sum of Rs. 9.17 crores was required to be added while computing the assessee's book profit. Counsel submitted that in the return filed, the assessee had made full disclosures. There was no failure on part of the assessee to disclose material facts. Reasons recorded by the Assessing Officer do not refer to any such failure of the assessee. Additionally, during the scrutiny assessment, this aspect had also come up for discussion. 5. On the other hand, learned counsel for the Revenue opposed the petition contending that the Assessing Officer had recorded proper reasons and thereafter issued notice for reopening of assessment. 6. As noted, return filed by the assessee was taken....