TaxTMI 
TaxTMI 
2022 (8) TMI 1094
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....ar (AY) 2012-13 a return of income had been filed disclosing income both under the regular provisions as well as under the provisions of Minimum Alternate Tax (in short 'MAT'). 2. Proceedings for amalgamation had been ongoing at that particular juncture, in Company Petition Nos.190 and 191 of 2012 for amalgamation of the petitioner with one, Island Hotel Maharaj Limited. By order dated 06.02.2013 the scheme of amalgamation had been approved by this Court, merging the aforesaid two entities. The appointed date was fixed as 01.04.2011. 3. The scheme provided for the merging of the assets and liabilities as well as the method of accounting to be followed in respect of the merged assets. The accounting was to be under the pooling of interest ....
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.... profit arrived at in the present case was 'nil'. Since the amount of book depreciation constituted the lower of the two figures, the same was taken into the reckoning for arriving at the adjusted book profit. This procedure followed aligns with the prescription and the methodology set out under Section 115JB. 7. An order of assessment came to be passed thereafter on 26.03.2015, the Assessing Authority computing income both under regular provisions as well as under the provisions of MAT. As far as the latter is concerned the computation is as follows:- Computation of book profit u/s 115JB. Book Profit (As per Memo) 18,05,97,492 Add: Expenses attributable to income exempt 22,66,356 Taxable Book Profit 18,28,63,848 Set off of brough....
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....k profit u/s 115JB after reducing book loss of transferor Company amounting to Rs . 18,05,97,492/- 2.3 . During the scrutiny assessment u/s 143 (3), an addition of Rs. 55,25,821/- was made amounting to Rs.15,14,02,337/ - under normal computation. However, the assessed income has become NIL after setting-off with the brought forward business loss/ unabsorbed depreciation loss. An addition of Rs.22,66,356/- was made to the book profit u/ s 115JB totalling to 18,28,63,848/ - . However, the assessment was completed with NIL book profit after setting - off with the brought forward book loss of the transferor company (M/s. Island Maharaj Limited). 2.4 . It is seen from the ' Post Amalgamation Annual A/Cs for the year ending 31.03.2012 und....
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....ucted under Section 115 JB. However the computation accompanying the revised return reveals depreciation of a sum of Rs.18.05 crores. 12. That apart, the challenge is on the assumption of jurisdiction by the Assessing Officer, seeing as the provisions of Section 147 of the Act impose a pre-condition that, for the department to proceed for reassessment beyond a period of 4 years, the burden was upon it to establish that the assessee concerned had made an incomplete and untrue disclosure at the first instance. In the present proceedings the reopening is beyond the period of four years from the end of relevant assessment year. 13.The officer considered the objections raised by the petitioner and rejects the same vide the impugned order dated....
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.... which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure76 on the part of the asses....