TaxTMI 
TaxTMI 
2023 (9) TMI 101
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.... taxes inadvertently wrongly calculated under MAT and paid under self assessment at the time of filing of income tax return whereas no liability is due under MAT in the orders passed under section 143(3) r.w.s 147 dated 18.03.2016 and 27.09.2019 as there was an error in records which is required to be rectified u/s 154." 3. During the course of hearing, the Ld. AR submitted that the assessee company owns 124 Bighas of agricultural land which consists of mostly Orchard. It was submitted that main business of the assessee company is in Tourism field by undertaking Eco Tourism including Hotel Resort and Spa at Village Ramshehar Nalagarh and agricultural activity on the land purchased. It was submitted that the assessee company filed its return of income for A.Y. 2012-13 on 30/09/2012 by including agricultural income of Rs. 23,60,000/- as business income and deduction under section 80IC(2) was claimed on the said income. Thereafter return of income was processed under section 143(1) and returned income was accepted. 4. It was submitted that subsequently, the assessment proceedings were reopened with reference to deduction claimed under section 80IC(2). In response, the assessee c....
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....comments that a claim having not been made in the original return, the same is not liable to be given but then in para 7, he has given certain findings and thereafter, the findings in the earlier assessment order has been confirmed. In light of above, it was submitted that the order passed under section 147 r.w.s 143(3) dt. 14/12/2016 has attained finality in so far as the assessee and the Department are concerned and since there is no change in the assessed income, no further action was required. 8. It was further submitted that in the garb of application moved by the assessee under section 154, the enhancement has been made by the AO which is void ab initio. It was submitted that the assessee had filed an application under section 154 and in the garb of the said application which was rightly made for claiming refund, the deemed income of Rs. 23,54,772/- have been computed and the tax liability of Rs. 4,98,280/- has been calculated. It was submitted that without prejudice to the earlier submission that the matter has attained finality, it was submitted that the order passed under section 154 is illegal and void since it has resulted in enhancement of income and raising of deman....
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....d self-assessment tax amounting to Rs. 4,98,280/- on the book profit of Rs. 23,54,772/- declared as per return of income. The self-assessment tax of Rs. 4,98,280/-was paid by the appellant on declared tax liability as per MAT provisions and the same has been duly given credit in the assessment order passed U/s 143(3) of the Income Tax Act, 1961. Subsequently, in the rectification application, the appellant pleaded that the self-assessment tax of Rs. 4,98,280/- was not refunded even though the income returned was accepted. However, the AO noted that the appellant has paid self-assessment tax of Rs. 4,98,280/- on the book profit declared and accordingly, he rejected the rectification application. The AO is correct in his action, as he cannot reduce the income declared under 115JB which is derived from the P & L account prepared as per the provisions of companies Act. Further, it is pertinent to mention here that the appellant itself has declared the income in the return and shown tax liability under section 115JB of the Income Tax Act and paid the taxes as per MAT provisions. 4.2 It is seen that the appellant filed its return of income on 30.09.2012 declaring total income of....
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....t under section 10(1) of the Act. Therefore, it was incumbent on part of the AO to recompute the tax computation for the purposes of determining the liability under section 115JB by reducing the said agriculture income from the book profits declared by the assessee even though the assessee has not done so in the return of income. We find that the same has effectively been done by the AO by determining NIL tax liability under both the normal provisions as well as MAT provisions while passing original assessment order passed u/s 143(3) r/w 147 dated 14/12/2016 and thereafter, in reassessment order passed u/s 143(3) r/w 147 dated 27/09/2019. Therefore, the assessee was well within its right to claim refund of taxes which was not granted even though the tax liability has been determined at NIL. The action of the AO while disposing off the assessee's application u/s 154 recomputing the book profits by including the agriculture income is therefore clearly not sustainable in eyes of law. Firstly, there was no mistake in the original orders passed by the AO as we have seen above, secondly, there was no notice to the assessee before enhancing the income and thirdly, the AO in his zeal of di....
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.... of the present case are exactly identical as in ITA No. 127/Chd/2023 and various contentions and arguments taken by the assessee therein may be considered for the present appeal. 16. Per contra, the Ld. DR has relied on the findings of the lower authorities and our reference was drawn to the findings of the Ld. CIT(A) which are contained in para 5.1 & 5.2 of the impugned order and contents therein read as under: "5.1 I have perused the assessment order, order passed under section 154, written submissions and the facts of the case. In this case, assessment u/s 143(3) was completed vide order dated 18.03.2016 accepting 'Nil' returned income. The appellant paid self-assessment tax amounting to Rs. 10,42,000/- on the book profit of Rs. 49,24,282/- declared as per return of income. The self-assessment tax of Rs. 10,42,000/- was paid by the appellant on declared tax liability as per MAT provisions and the same has been duly given credit in the assessment order passed U/s 143(3) of the Income Tax Act, 1961. Subsequently, in the rectification application, the appellant pleaded that the self-assessment tax of Rs. 10,42,000/- was not refunded even though the income retur....