TaxTMI 
TaxTMI 
2024 (5) TMI 636
X X X X Extracts X X X X
X X X X Extracts X X X X
....s revised on 30/03/2015 declaring Nil income under normal provisions and book profit remained unchanged. Case of the assessee was selected for scrutiny through CASS followed by valid issuance of notice u/s. 143(2) and 142(1) of the Act. Various details were called for through questionnaire issued u/s 142(1) to which necessary compliance were made. After making certain additions/disallowance assessment was completed on 30/12/2016. Subsequently, ld. Pr. CIT called for assessment records and on the basis of his verification of the material available on record, he was of the view that the order of the assessment is erroneous so far as prejudicial to the interest of the revenue on various grounds which have been noted by the by the ld. Pr. CIT in the show-cause notice issued on 05/02/2019. During the course of the revisionary proceedings, the assessee filed replies on various dates stating that in some of the issues raised in the show cause notice, this Tribunal in assessee's own case has taken a view favourable view to the assessee and, therefore, the assessment order cannot be held to be erroneous and prejudicial to the interest of the revenue. The following chart depicts the issue ra....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in VCF from PGBP and offer of net income in computation of total income s per form 64 issued by fund Explanation regarding nature of share of loss of alternative investment funds ("AIF") (refer notice under section 142(1) dated 14-9-2016 enclosed as annexure-5) page 161 Reply dated 2-12-2016 Pages 207-215 of the paper book) refer page 210 of the paper book 7. Exclusion of capital profits from computation of book profits under section 115JB Explanation regarding exclusion of profit on account of sale of investments from computation of income under section 115JB (refer notice under section 142(1) dated 14-9-2016 enclosed s annexure-5) page 162. Reply dated 7-12-2016 Pages 216-233 of the paper book) refer pages 230-232 of the paper book Explanation regarding the adjustment of profit from IPDF along with the clause under Explanation 1 of section 115JB by virtue of which adjustment was made. 2.1. After considering these details, the ld. Pr. CIT has held that the issue raised in the show-cause notice need proper enquiry and thus directed the Assessing Officer to framed a fresh assessment order in accordance with the directions given in the impugned order. 3. Aggrieved the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... matter to the A.O. to verify whether the appellant is eligible for additional depreciation u/s 32(1)(iia) of Rs. 4,34,49,784/- on leased windmills engaged in generation of power. 8. That on the facts and in the circumstances of the case and without prejudice to Ground No. 1 to 3 taken here-in-above, the Ld. Pr. CIT was not justified and grossly erred in referring the matter to the A.O. to verify the taxability of the income received from venture capital fund. 9. That on the facts and in the circumstances of the case and without prejudice to the Ground No. 1 to 3 taken here-in-above, the Ld. Pr. CIT was not justified and grossly erred in referring the matter to the A.O. to verify the taxability of capital profit in computing Book Profits u/s 115JB. 10. That the appellant craves leave to add, to amend, modify, rescind, supplement or alter any of the Grounds stated here-in-above, either before or at the time of hearing of this appeal." 4. At the outset, the ld. Counsel for the assessee referred to paper books and submissions and also taking us through a brief synopsis stated that the order of the Assessing Officer is not erroneous and prejudicial to the interest of the revenue....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... rights in land and building Explanation of computation of STCL of Rs. 11.03 Crs & reconciliation of such loss with computation of income and justification of same (Refer notice u/s 142(1) dated 14-09-2016) Section 50C of the Act not applicable on transfer of leasehold rights. Reply dated 04-11-2016 and 06-10-2015 159,183 Duly examined by AO during assessment. Refer Case Law No. 2 and 3 6. Claim of exclusion of Debt Redemption Reserve (DRR) in computation of book profits u/s 115TB Explanation regarding clause under Explanation 1 of Sec. 115TB by virtue of which adjustment of amount DRR was made in computing Book Profit u/s 115JB (Refer notice u/s 142(1) dated 14-09-2016) Reply dated 07-12-2016 111,223 Allowed in order passed u/s 263/143(3) of the Act dated 24-12-2019, refer page 65 of Case Laws P/B 7. Deduction of balance 10% Additional Depreciation on windmill capitalized in AY 2012-13 Only balance 10% additional depreciation is claimed u/s 32(l)(iia) on assets acquired and used for less than 180 days in AY 2012-13. Further, the basis of claim is also evident fro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....osed separately- as.- liabilities in the balance sheet as per Direction 10 of the said prudential norms., The Non- Performing Assets, against which the provision is made remains intact without any reduction. Based on the above factual and legal position, we are of the view that provision for Non-performing assets cannot be said to be provision for diminution in value of assets to attract disallowance as per clause (i) of Explanation 1 to sec. 115JB(2) of the Act. In other words, by making a provision for NPA, there will be no reduction in NPA. Hence, clause (i) of Explanation to Sec. 115JB(2) does not apply since there is no reduction in value of asset. Accordingly, this ground of the assessee is allowed and Assessing Officer is directed to delete addition made of Rs. 13,71,00,000/- in computing book profit u/s 115JB of the Act. These grounds of assessee are allowed." 8. Consistent with the view taken by the Tribunal in the assessee's own case for Assessment Year 2008-09 and 2011-12 (supra), we are of the considered view that the ld. Pr. CIT erred in holding the order of the Assessing Officer as erroneous and prejudicial to the interest of the revenue based on this issue raised in....