2022 (4) TMI 227

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....eously passing an order under section 154 of the Income-tax Act, 1961 ('the Act') beyond the limitation period 1.1. On the facts and circumstances of the case and in law, the impugned order passed under section 154 of the Act by the Learned Assessing Officer ('Ld, AO') is void ab initio as notice under section 154 of the Act was served beyond a period of 4 years from the end of the financial year in which the order sought to be rectified was passed (i.e. draft assessment order). Also, the Learned Commissioner of Income-tax (Appeals) ['Ld. CIT(A)'] has erred in considering the period of limitation of 4 years from the end of the financial year in which the final assessment order was passed, instead of the draf....

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....s and circumstances of the case and in law, the Ld. CIT(A) and the Ld. AO have erred in not considering the fact that the book profit of INR 3,67,14,142 is merely an accounting entry and the same should not be considered as taxable income for the purposes of Income-tax Act. Your Appellant prays that the additions made/confirmed by the Ld. AO/Ld. CIT(A) should be deleted. The Appellant craves leave to add, alter, amend, withdraw, modify and/or substitute any of the above grounds of appeal." 2. Fact in brief is that return of income declaring loss of Rs. 12,26,74,901/- was filed on 14.09.2010. The return of income was subject to scrutiny assessment and notice u/s 143(2) of the Act was issued on 18.08.2010. The assessment ....

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....penses incurred on engineering and design charges and such reimbursement of Rs. 15,80,36,317/- received from Ford on account of engineering and design charges has been offered to tax. It is further, submitted that for the tax computation of assessment year 2009-10 the assessee has reduced gain recorded in the books of account to the amount of Rs. 3,67,14,142/- being book entry and offered to tax the entire amount of Rs. 15,80,36,317/- received from Ford Motor Company. The ld. Counsel has also filed paper book comprising copies of document and detail submitted before the A.O and ld. CIT(A). The ld. Counsel has referred various pages of the paper book. She referred page No. 216 of the paper book stating that it was specifically explained befo....

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.... claimed deduction for the above expenditure as capital expenditure incurred on scientific research as per the provision of Sec. 35(1)(iv) of the Act and has not claimed any depreciation under the provision of Sec. 32 of the I.T. Act. During the year under consideration the assessee has recovered part of the engineering and development cost amounting to Rs. 15,80,36,317/- as reimbursement from Ford and profit of Rs. 3,67,14,142/- was recorded in the books of account the assessee. The assessee claimed that reimbursement of Rs. 15,80,36,317/- has been fully offered to tax. The ld. CIT(A) has dismissed the appeal of the assessee stating that the amount offered for tax was not supported with the relevant document. It is observed that A.O has al....