TaxTMI 
TaxTMI 
2024 (8) TMI 818
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....return of income was filed for the present assessment year on 30.11.2017 showing a total income of Rs. 12,02,70,890/-. It is important to note that the case was picked up for scrutiny on account of, among other issues, 'reduction in profit due to ICDS'. Thereafter, the Assessing Officer (hereinafter referred to as ld. 'AO') apparently disallowed the claim of Rs. 51,54,082/- on account of change in foreign exchange rates, out of two issues; the second being the increase in profit pertaining to ICDS-V being tangible fixed assets at Rs. 5,82,61,440/- (impugned amount). 1.1. Thereafter, the ld. Pr. CIT, Kolkata-2 initiated proceedings u/s 263 of the Income Tax Act, 1961 (in short the 'Act') on the ground that the auditors in ....
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....ore the ld. Pr. CIT: a) Audited financial statements for FY 2016-17. b) Copy of computation of income for AY 2017-18. c) Tax audit report for AY 2017-18. d) Income tax return for AY 2017-18. e) Notice u/s 142(1) of the Act dated 10.02.2021. f) Assessment order u/s 143(3) of the Act dated 27.04.2021 AY 2017-18. 1.3. It is clear from the description above that all these documents would be available with the AO or would have been filed along with the return of income for the year under consideration. Thus, apparently all documents placed before us, and which were not considered by Ld. Pr. CIT, would not be fresh evidence. 2. Considering these facts, we have decided to proceed ahead wi....
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....ought to be held as wholly unjustified on facts and in law. 4. For that on the facts and in the circumstances of the case and in law, the Ld. Pr.CIT was unjustified in setting aside the assessment and directing the AO to re-verify the issue, without objectively dealing with the submissions put forth by the assessee which clearly showed that the assessment order was neither erroneous nor prejudicial to the interest of the Revenue. 5. For that on the facts and in the circumstances of the case and in law, the order dated 21.03.2024 passed u/s 263 of the Act passed by the Ld. Pr.CIT is untenable on facts and in law and thus deserves to be deleted. 6. For that the assessee craves leave to submit additional grounds and/....
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....53,940 10,04,44,480 (a) - (b) 5,82,61,440 1,70,500 5,84,31,940 3.1. It is seen that the Central Government had notified the Income Computation and Disclosure Standards (ICDS) which need to be followed for computation of income chargeable under the head 'profits and gains from business or profession'. ICDS-V deals with treatment of tangible fixed assets. The tax audit report proforma was amended to incorporate reporting of the adjustments under the ICDS. Clause 13(e) of audited report requires ICDS-wise reporting of the adjustments in the profit and loss account, after showing a clear increase/decrease in profits as well as the overall net effect of such adjustments. It has been pointed out that the tax auditors had accordi....
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....This specific query deserves to be extracted: "Q6 As per column No. 13(e) of Form 3CB it is seen that there is an adjustment made to the profit and loss for complying with the ICDS notified as per section 145(2) of the Act. Please give a detailed working of such adjustments made by you with proper documentary evidences and justification." 3.4. The reply filed in this regard has also been placed before us, in which it is clear that the accounts working of depreciation actually chargeable under the profit and loss account has been correctly worked out and more importantly disclosed in the audit report filed along with the return of income. On this fact alone, the impugned order deserves to be quashed since the issue has been consi....