TaxTMI 
TaxTMI 
2025 (2) TMI 1757
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....rmation/ material is available on record. 1.3. The learned AO erred in law and in facts by revising a considered view taken by the learned AO during original assessment i.e., change in opinion does not confer jurisdiction on the learned AO to reopen the completed assessment under section 147 of the Act. Further, the reassessment could not be a review of an earlier assessment order. 2. Re-computation of book profits under Section 115JB of the Act - INR 60,11,503 [Page 4 to 9 of the Assessment Order issued under section 147 r.w.s 144 of the Act] 2.1. The Hon'ble CIT(A) and the learned AO grossly erred in re-computing the book profit under Section 115JB of the Act by making addition of an amount of INR 60,11,503 towards difference arising on account of valuation of closing stock. 2.2. The Hon'ble CIT(A) and the learned AO has failed to appreciate that the disallowance as prescribed in clause (a) to (k) of Explanation 1 to Section 115JB of the Act is not applicable in case of discrepancy in valuation of closing stock. 2.3. The Hon'ble DRP and the learned AO erred in disregarding the decision of Hon'ble Supreme Court in the ca....
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.... penalty proceedings under Section 271(1)(c) of the Act [Page 9 & 12 of the Assessment Order issued under section 147 r.w.s 144 of the Act] The learned AO erred in law and facts in initiating penalty proceedings under Section 274 read with Section 271(1)(c) of the Act, as no case is made out by the AO that the Appellant has concealed any particulars of income/ furnished inaccurate particulars to the learned AO either in the tax return or during the assessment proceedings. The appellant craves to add, alter, amend, or delete all or any of the grounds of appeal before or during the course of Hearing before the Honorable ITAT." 3. Representatives of both the sides were heard at length. Case records carefully perused and the relevant documentary evidence brought on record, duly considered in light of Rule 18(6) of the ITAT Rules, 1963. 4. Briefly stated the facts of the case are that the original assessment order was framed u/s 143(3) r.w.s. 92CA(3) of the Act vide order dated 21/03/2016. The completed assessment was reopened and the reasons for reopening the assessment is extracted in the body of the assessment order which reads as under:- "The reason ....
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....dings u/s.147 of the Act are reason to believe that income for the year under consideration has escaped assessment because the difference in valuation of closing stock amounting to Rs. 1,36,36,069/- was added back to the total income under the normal provisions but could not added to book profit u/s 115JB of the I.T.Act, the sum of Rs, 99,48,700/- as exchange loss which have not been debited in the profit & loss account but claimed as deduction in the statement of income and reduction of the sum of Rs. 6,29,87,464/- towards amount withdrawn (ii) On verification of record it is seen from the statement of income that sums of Rs. 99,48,700/- have been claimed as deduction towards exchange loss which has not debited to profit & Loss. Since the method of accounting employed by assessee company is mercantile system of accounting any sum to qualify as liability/expenditure incurred should necessarily be accounted in the profit & loss account and the Balance Sheet. Therefore, the sum of Rs. 99,48,700/- which have not been debited in the profit & loss account should not be qualify for deduction which the assessee company claimed as deduction in the statement of income. (ii....
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..... No. Particulars Amount (Rs.) 1 Assessed income u/s 143(3)r.w.s 92CA(3) of the Act, dated 21.03.2016 (Before set-off of losses) Income from Business & Profession Rs. 3,82,34,212 Income from other sources Rs. 3,67,46,033 Long term capital gain Rs. 19,74,28,402 Total Rs. 27,24,08,647 27,24,08,647 Less: Set-off brought forward losses of A.Ys 2009-10 & 2011-12 24,67,34,212 2 Assessed income u/s 143(3)r.w.s 92CA(3) of the Act, dated 21.03.2016 (after set-off of losses) 2,56,74,435 Add: Disallowance on account of loss on foreign currency fluctuation 99,48,700 3 Assessed income u/s 147 r.w.s. 144 3,56,23,135 Total taxable income 1,06,86,940 Income under section 115JB Sr. No. Particulars Amount (Rs.) 1 Book profit u/s 115JB as per ITR 32,58,76,411 2 Add:Difference in valuation of closing stock 60,11,503 3 Book profit u/s 115JB after assessment 33,18,87,914 MAT @ 18.5% 6,13,99,264 6. We find that the issue relating to the valuation of closing stock was considered in the original assessment order dated 21/03/2016 wherein differe....