2017 (7) TMI 1375

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....ar (AY) 2011-12. 2. The sole issue arising in the instant appeal is the maintainability of the order u/s. 154 seeking to assess the book profit of the assessee at the 'correct' figure. The assessee filed its return of income for the year on 30.09.2011, disclosing regular income at Rs. 1,42,43,520/- and book profit at Rs. 506,04,764/-. The same was subject to the verification procedure under the Act, assessing regular income at Rs. 158.66 lacs vide order u/s. 143(3) dated 19.03.2014. This was followed by a notice u/s. 154(3) by the Assessing Officer (AO) dated 21.09.2015 (served on 23/9/2015), stating that the book profit had been wrongly assessed at Rs. 64,64,764/-, and had to be as per the profit and loss account, duly audited, i.e., at....

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....s not been examined at all, the same cannot be regarded as a mistake apparent from record. 4. We have heard the parties, perused the material on record, and given a careful consideration to the matter. The primary facts are not in dispute. The assessee per its original return u/s. 139(1) returned book profit as per profit and loss account, i.e., at Rs.  506,04,764/-. The same was revised u/s. 139(4) to Rs. 64,64,764/- by deleting the profit of Rs. 441.40 lacs on the sale of shares credited to the profit and loss account, duly audited. It is this profit that the Revenue has subject to book profit tax through recourse to s. 154. This is borne out by the notice u/s. 154(3) dated 29/1/2015, the contents of which are extracted in the ....

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....t profit. The same surely cannot be equated with the non-examination of any aspect in assessment, and which is subsequently sought to be carried under sec. 154. The next question is if the AO, in view of the limited purview of s. 154, exceeded his jurisdiction in altering the assessed figure of Rs. 64,64,764/- to Rs.  506,04,764/-, i.e., by including the profit on the sale of shares. Without doubt, debatable issues, either of fact or of law, are outside the ambit of s. 154, so that alteration of the book profit by the AO u/s. 154 could only be subject to it being not a debatable or a contentious issue. That is, is only a mistake, apparent from record, on the part of the AO in assessing at the said figure. In this regard, it is well set....