TaxTMI 
TaxTMI 
2022 (4) TMI 1187
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....Income Tax Appellate Tribunal, 'B' Bench, Bangalore ('Tribunal' for short) in M.P.No.142/Bang/2019 and ITA No.1518/Bang/2018 at Annexures - 'A' and 'B' respectively, relating to the assessment year 2013-14 raising the following substantial questions of law:- "1. Whether the Tribunal was right in law dismissing the miscellaneous petition preferred by Revenue by holding that there are no merits to consider the said petition when conditions set out in Section 254[2] are fully satisfied in present case? 2. Whether on the facts and circumstances of the case and in law, the Tribunal is right in law holding that Section 14A disallowance cannot be made while computing book profit under Section 115JB of the Act ignoring Explanation....
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....e appeal filed by the assessee came to be allowed. The revenue preferred Miscellaneous Petition No. 142/Bang/2019 and the same came to be dismissed. Hence, the revenue is in appeal before this Court. 3. Learned counsel for the revenue submitted that the Tribunal has failed to appreciate the provisions of Explanation 1(f) to Section 115JB(2) in a right perspective. Referring to the said provision it was submitted that the amount or amounts of expenditure relatable to any income to which Section 10 other than the provisions contained in clause (38) thereof or Section 11 or Section 12 apply has to be considered for the purpose of Section 115JB(2) while considering the book profits. The order of the Tribunal is perverse in not following the ....
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....f the Act. 7. Section 154 of the Act reads thus:- "Rectification of mistake. 154. [(1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to, in section 116 may,- (a) amend any order passed by it under the provisions of this Act; (b) amend any intimation or deemed intimation under sub- section (1) of section 143; (c) amend any intimation under sub-section (1) of section 200A; (d) amend any intimation under sub-section (1) of section 206CB; (1A) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, not....
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.... (6) Where any such amendment has the effect of enhancing the assessment or reducing a refund already made or otherwise increasing the liability of the assessee or the deductor or the collector, the Assessing Officer shall serve on the assessee or the deductor or the collector, as the case may be a notice of demand in the prescribed form specifying the sum payable, and such notice of demand shall be deemed to be issued under section 156 and the provisions of this Act shall apply accordingly. (7) Save as otherwise provided in section 155 or sub- section (4) of section 186, no amendment under this section shall be made after the expiry of four years from the end of the financial year in which the order sought to be amended was passe....
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.... year relevant to the assessment year commencing on or after the 1st day of April 2012, is less than 18.5% of its Book Profits, such Book Profits shall be deemed to be the total income of the assessee and tax shall be payable on such total income @18.5%. Thus, the scheme of the Act is that the computation is first made under the normal provisions of Income-tax Act and, thereafter, under an alternate scheme provided u/s 115JB for computing total income as per the prescribed method. If the tax liability on the basis of total income as per MAT provisions is more than the tax computed under the normal provisions of the Act, then the former becomes the final tax liability of the assessee. The mode of computation of Book Profits has been prescrib....
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.... Commissioner of Income Tax vs. Gokaldas Images (P) Ltd., reported in (2020) 429 ITR 526 (Kar.), having regard to Clause (f) of Explanation 1 to Section 115JB(2) of the Act, it has been observed that additions made by the assessing officer determining book profit under Section 115JB of the Act cannot be sustained. Any disallowance computed under Section 14A of the Act pertains to computation of income under the normal provisions of the Act and cannot be read into the provisions of Section 115JB of the Act pertaining to levy of minimum alternate tax and there is no express provision in clause (f) of Explanation 1 to Section 115JB of the Act to that extent. 11. The Co-ordinate bench of this Court in ITA No.244/2021 (The Pr. Commissioner of....