2022 (10) TMI 340

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.... common order for the sake of convenience and brevity. 2. The assessee filed the return of income for 2015-16 on 29.09.2015 declaring Nil taxable income and book profit of Rs.57,36,04,830/-. For ay 2016-17 the filed return of income on 10.10.2016 declaring Nil income and book profit of Rs.22,06,11,166/-. There was a search under Section 132 of the Income Tax Act, 1961 (the Act) in assessee's case on 23.12.2016. The AO based on the return filed by the assessee and the statement recorded during the course of search made certain additions and completed the assessment for both the years under Section 143(3) r.w.s. 153A of the Act for these assessment years vide orders dated 31.12.2018.The AO accepted the computation of book profits u/s.115JC o....

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....rder that the AO intended to enhance the adjusted total income of the assessee for the purpose of section 115JC and that based on the material available on record it cannot be said that there was a mistake apparent on record warranting rectification under Section 154 of the Act. 6. The learned A.R. submitted that the AO should not have added the disallowance made during the assessment proceedings to the book profits as it is not a mistake apparent on record. The learned A.R. also submitted that there is no authority to re-compute the book profits for the purpose of section 115JC and in this regard the learned A.R. relied on the decision of the Hon'ble Supreme Court in the case of Appollo Tyres vs. PCIT (2002) 255 ITR 273 (SC). The lear....

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....r). 7. The learned D.R. submitted that the addition made under Section 143(3) r.w.s. 153A of the Act is a material available on record and it is a fact that the said addition is not adjusted in the book profits u/s.115JC while completing the assessment. Therefore the AO has rectified this mistake by passing the order of rectification under Section 154 of the Act. It was also submitted by the learned D.R. that as per the provisions of sub-section (6) of Section 115JD of the Act it is provided that if the amount of regular income-tax or the alternate minimum tax is reduced or increased as a result of any order passed under this Act, the amount of tax credit allowed under this section shall also be varied accordingly. Therefore the learned DR....