TaxTMI 
TaxTMI 
2022 (8) TMI 1094
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....short 'Act'). In respect of assessment year (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 accoun....
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.... adjusted book profit. Applying the aforesaid methodology, the adjusted book 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 att....
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....al income of Rs.14,58,76,516/- against unabsorbed depreciation loss/brought forward business loss . The assessee offered NIL book 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 co....
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....ct,1961." 11. The premise upon which the assessment has been re-opened is that the loss available was a sum of Rs.50.52 Crores and no book loss or depreciation was available to be deducted 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 bey....
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....t any income chargeable to tax has escaped assessment75 for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess75 such income and also any other income chargeable to tax 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 thi....
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....re is no dispute in this regard and all material in regard to the computation of tax under the provisions of MAT were available before the Assessing Authority. 19. The reasons proceed on the basis that the methodology for computation is erroneous which premise, as noticed earlier, does not appear to be correct as the financials disclose the availability of depreciation. In such circumstances, the assumption of jurisdiction under Section 147 is held to be bad in law. 20. That apart, I also find force in the submission that there is no allegation in the reason itself to the effect that there has been any incomplete disclosure or false statement made at the time of assessment that would justify the assumption of jurisdiction beyond the p....