2026 (3) TMI 532

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....(A)"], for the assessment year 2015-16. 2. The solitary grievance of the assessee is against the reopening of the assessment under section 147 of the Act for the year under consideration. 3. We have considered the submissions of both sides and perused the material available on record. The brief facts of the case are that the assessee is engaged in the business of manufacturing organic chemicals, viz., acetic acid, ethyl acetate, acetaldehyde, etc., during the year under consideration. The assessee filed its return of income on 27.11.2011, declaring a loss of Rs. 3,16,49,438/-. The return filed by the assessee was selected for scrutiny, and vide order dated 06.11.2017, passed under section 143(3) of the Act, the scrutiny assessment was....

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....ter of the reopening of the assessment under section 147 of the Act. Thus, the computation of deemed income under section 115JB of the Act at Rs. 42,472,661/- is completely erroneous. 7. Before proceeding further, it is pertinent to note the findings of the AO in the assessment order passed under section 147 read with section 144B of the Act, which are reproduced as follows: - "The assessee company was engaged in the business of manufacturing organic chemicals viz., acetic acid, ethyl acetate, acetaldehyde etc during the year under consideration. The assessee-filed its return of income on 27.11.2015 declaring income of Rs. (-)3,16,49,438/-. The case was selected for Scrutiny assessment under u/s 148. Assessment u/s 143(3) of the....

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....x Act, 1961 was also issued and served upon the assessee after taking prior approval of the competent authority. Further notices dated, 14/06/2021, 20/12/2021, 21/12/2021, 28/02/2022 u/s. 142(1) of the Income Tax Act, 1961 was issued to the assessee. In this regard assessee has filed reply as, previous assessment order, balance sheet, Tax audit report. All documents are examined. No any adverse drawn, hence return income is accepted." 8. Thus, from a perusal of the assessment order, it is evident that the reassessment proceedings under section 147 of the Act were initiated on the basis that during the assessment proceedings under section 143(3) of the Act, no proper documentary evidence was furnished by the assessee to substantiate the g....

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....was no addition to the total income of the assessee on this count. Therefore, from the perusal of the material available on record, it is evident that the AO accepted the reasons on the basis of which notice under section 148 was issued and made no addition thereon. Thus, the reasons for reopening the assessment do not survive, in the present case, in view of the findings of the AO. Instead, the AO proceeded to compute the book profit under section 115JB of the Act, resulting in a demand on the assessee. 11. In this regard, it is pertinent to note the following finding of the Hon'ble Jurisdictional High Court in CIT v. Jet Airways (India) Ltd., reported in (2011) 331 ITR 236 (Bom): - "16. ........Section 147 has this effect that....