TaxTMI 
TaxTMI 
2017 (7) TMI 1432
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....ssee filed return of income on 23.09.2012 showing total income of Rs.39,290/-. The return was processed u/s 143(1) of the Act on 02.01.2014. Later on an order of assessment u/s 143(3) of the Act was passed on 04.03.2015. The assessment was completed by applying the provisions of section 115JB of the Act (Minimum Alternate Tax) on a book profit of Rs.1,21,24,731/- on which tax liability of the assessee was Rs.24,25,890/-. 3. Before completing the assessment u/s 143(3) of the Act the AO had issued a notice u/s 143(2) and 142(1) of the Act dated 07.08.2013 in which the AO had called upon the assessee to furnish the following details :- "Particulars of Accounts and/or documents required : 1. Reasonably detailed note on the ....
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....also claimed deduction u/s 80IB of the Act in respect of profits from housing projects. The assessee had claimed deduction of a sum of Rs.83,66,321/- in respect of profits from housing project and highland woods. The assessee filed the Tax Audit Report u/s 44AB of the Act in Form No.3CA along with the particulars and also furnished Form No.3CD. In respect of deduction claimed u/s 80IB(10) of the Act the assessee also gave the audit report in Form No.10CCB and gave the basis on which deduction u/s 80IB was claimed by the assessee. 6. In the order of assessment u/s 143(3) of the Act the AO has specifically observed as follows on the deduction u/s 80IB(10) of the Act :- " 2. During the year, the assessee company is engaged in real ....
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....by issuing either notice u/s 133(6) or making any enquiry. 4. In light of the above, I am satisfied that prima facie the order dated 04.032015 passed u/s 143(3) of e Income Tax Act, 1961 is erroneous .and prejudicial to the interests of the revenues. " 9. In response to the aforesaid show cause notice the assessee filed a reply in which the assessee brought to the notice of CIT that the Assessee's tax liability was determined under section 115JB of the Act, whereby Minimum Alternate Tax ('MAT') (including surcharge and education cess) on adjusted book profit was computed at Rs 2,425,890. The assessee has furnished the Form 10CCB (copy re-enclosed as Annexure 2 for your reference) and complete details relating to advance ....
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....03.2015 passed u/s 143(3) of the I.T Act by the A.O stands erroneous so far as prejudicial to the interest of revenue and deserves to be set aside to the table of A..O with direction to examine and verify the above issue after giving sufficient opportunity of being heard to the assessee." 11. Aggrieved by the order of CIT the assessee has preferred the present appeal before the Tribunal. 12. We have heard the submissions of the ld. Counsel for the assessee and the ld. DR. The ld. Counsel for the assessee submitted that all the facts with regard to the claim for deduction u/s 80IB(10) of the Act were furnished by the assessee and were examined by the AO. According to him therefore there was due application of mind by the AO on issue of....
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..... DR relied on the order of CIT and submitted that the conditions for invoking powers u/s 263 of the Act were duly satisfied. 16. We have given a very careful consideration to the rival submissions. We are of the view that on both the issues of allowing deduction u/s 80IB(10) of the Act as well as the details of advance from the customers the AO had made due enquiries before completing the assessment u/s 143(3) of the Act. These details had already been set out in paragraphs 3 to 7 of this order. The order of the AO also makes reference to all the details having been perused by the AO. In particular there is a specific reference to the examination by the AO of deduction u/s 80IB(10) of the Act. The conclusion of CIT therefore that the AO....