TaxTMI 
TaxTMI 
2024 (3) TMI 829
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....ppellate Tribunal, Ahmedabad 'E' Bench, Ahmedabad (for short, "the Tribunal") in ITA No. 1497/Ahd/2019 for A.Y. 2011-12: "(i) Whether the Ld. ITAT was right in law and facts in holding that non-inclusion of income surrendered u/s. 115 JB could not have been corrected in rectification proceedings u/s. 154 of the Income Tax Act, 1961?" [2] The respondent - assessee filed return of income on 29th September 2011 declaring total income of Rs. 27,73,80,140/-. The assessment was completed under Section 143(3) of the Act on 25th February 2014 determining total income at Rs. 27,82,83,960/- by making addition of Rs. 9,03,820/- on which the tax was determined at Rs. 8,34,85,188/- and book profit under Section 115JB of the Act was calculated at Rs.....
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....any preferred the appeal before the CIT(A), who, by order dated 30th August 2019, confirmed the addition and the rectification order passed by the Assessing Officer under Section 154 of the Act. [8] Being aggrieved, the assessee company preferred the appeal before the Tribunal, who, by impugned order dated 13th March 2023, allowed the appeal on the ground that the amount included in the book profit of the assessee on the basis of the voluntary disclosure made during the course of survey under Section 133A of the Act, was not supported by any incriminating material found during the course of survey, revealing the nature and manner of earning income surrendered by the assessee company and therefore, it could not have been considered as a mis....
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....ed that the CIT(A) has rightly held that the amount of Rs. 17 Crores cannot be added in the book profit under Section 154 of the Act as such issue is a debatable issue. In support of his submission, reliance was placed on the decision of the Hon'ble Delhi High Court in the case of Commissioner of Income-tax vs. R.T.C.L. Ltd reported in [2012] taxmann.com 434 (Delhi), wherein it is held that jurisdiction under Section 154 of the Act is confined and restricted to rectification of errors and when the issue is debatable and in absence of any initiation or specific conclusion arrived at by the Assessing Officer as well as the Commissioner (Appeals), whether the issue was clear and that no debate or two views were possible. In similar facts, it w....
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.... being invariably included in the book profits of the assessee on the basis of the facts before us. In the absence of any incriminating material found, substantiating the surrender made, the same cannot invariably be said to represent the profit of the assessee for disclosure to its shareholders. If the surrender was corroborated with some undisclosed asset or incriminating document found, revealing the nature and manner of earning the income surrendered, it necessarily represented profits which needed to be disclosed in the profit and loss account also for the benefit of shareholders of the company. But without any incriminating material and without any clue about the nature of the disclosure also, the same could not be said to invariably ....