AI Drafter 
TaxTMI 
TaxTMI 
2021 (8) TMI 465
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....ts and circumstances of the case and in law, the Ld. CIT(A) has erred in Confirming the action of the DCIT in not allowing the exclusion of the Sales Tax Subsidy of Rs. 36,15,49,828/- from the Book Profits for the purpose of MAT Computation. 2. On the facts and in the circumstances of the case and in law, the CIT(A) erred in holding that the Appellant was not permitted to raise a fresh claiming the search assessment proceedings. 3. Brief facts of the issues are that the aforesaid claim of exclusion of the Sales Tax Subsidy of Rs. 36,15,49,828/- from the book profits for the purpose of MAT computation was not made by the assessee under original assessment u/s143(3) of the I.T.Act. During assessment proceedings u/s.153A of the I.T....
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....o exercise and assessment proceedings came to be final. Hon'ble Rajasthan High Court has held in the case of Jai Steel India vs ACIT 259 CTR 281 that the provisions of Sections 153A to 153C cannot be interpreted to be a further innings for the AO and/or assessee beyond provisions of Sections 139 (return of income), 139(5) (revised return of income), 147 (income escaping assessment) and 263 (revision of orders) of the Act The search assessment proceedings in cases where original assessments have achieved finality cannot be left open to assessee to take advantage of raising fresh claims which world not have been available to it had there been no search action. This ground of appeal is therefore dismissed. 4. Against the above order, th....
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....- in the profit and loss account and it has been formed part of book profit. He submitted that as per mandate section 115JB, the assessee has correctly not deducted the same from book profit. Now in the course of assessment u/s 153A, the assessee is making a claim that also without any revised return. Furthermore, he submitted that since it is non abated assessment, assesee is not entitled to raise a fresh claim in terms of Hon'ble Rajasthan High Court decision cited above. 8. Upon careful consideration, we note that this issue of claim of the assessee that the sales tax subsidy being a capital receipt should be reduced from book profit computation u/s 115JB was subject matter of assessee's appeal with ITAT in the course of regular as....
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....- incurred during FY 2004-05 on cancellation of forward contract considered as Capital Expenditure as per CIT(A)'s order 4. "Whether in the facts and circumstances of the case and in law the Ld. CIT(A) is justified in directing the AO to consider the increased written down value of the assets received from the merged companies thereby allowing the depreciation of Rs. 6,81,27,607/-." 5. "Whether in the facts and circumstances of the case and in law, the Ld. CIT(A) is justified in directing the AO to treat the sales tax incentive / concession of Rs. 36,15,49,828/- as capital receipt." 6. "Whether in facts and circumstances of the case and in law, the Ld. CIT(A) is justified in directing the AO to treat the sales....
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.... the decision and filed appeal with Hon'ble High Court on this issue which is pending." 10. At the outset, on this issue Ld. Counsel of the assessee submitted that all the issues raised are covered in favour of the assessee by the decision of ITAT in the appeal against CIT(A) order in original proceedings u/s.143(3). He submitted that Ld.CIT(A) has followed earlier appellate order, which has been duly approved by the ITAT. 11. On careful consideration, we note that the AO has a specifically made only one addition in the course of present assessment, which relates to computation of book profit which reads as under:- "One of the adjustments to be made while computing the book profit u/s. 115JB is to increase the net profit ....