2022 (4) TMI 1064

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....al Commissioner of Income Tax 1, Chennai dated 27.02.2019 relevant to the assessment year 2014-15 under section 263 of the Income Tax Act, 1961 ["Act" in short]. The Revenue preferred an appeal against the order passed by the ld. Commissioner of Income Tax (Appeals)-2, Chennai dated 29.11.2019 for the same assessment year against the order passed under section 143(3) r.w.s. 263 of the Act. 2. Brief facts of the case are that the assessee has filed its return of income for the assessment year 2014-15 on 18.11.2015 admitting total income of Rs. 3,39,00,858/-. The return filed by the assessee was selected for scrutiny and against the statutory notices, the assessee has furnished the details. After considering the details furnished by the as....

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....T has set aside the assessment order passed under section 143(3) of the Act and directed the Assessing Officer to redo the assessment. Accordingly, the Assessing Officer completed the assessment under section 143(3) r.w.s. 263 of the Act by levying Alternate Minimum Tax on the total income of the previous year at 18.5% of Rs. 3,61,91,450/- and raised the demand of Rs. 1,21,90,120/-. On appeal before the ld. CIT(A), after considering the submissions of the assessee as well as provisions of section 115JC of the Act, the ld. CIT(A) allowed the ground raised by the assessee by observing as under: "5. Decision : At the outset, Section 115JC of the Act is reproduced as under: 1. 115JC. (1) Notwithstanding anything conta....

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.... date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed. 5.1 The AO has taken contrary interpretations of 'Total Income', whereas he has arrived at a 'NIL' total Income under the Normal Computation method after setting off of the brought forward losses with the net profits. However for AMT computation, the AO adopted a position that Total Income means net profits and he has computed the Alternate Minimum Tax (AMT) on net profits without setting off with the brought forward losses. 5.2 However, section 115JC stipulates that the Alternate Minimum....