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2017 (1) TMI 812 - AT - Income TaxRevision u/s 263 - MAT computation - additions under heads of income namely interest on decommissioning fund, Levy for decommissioning,R&M Fund,R&D Fund not included while computing the book profit u/s. 115 JB - notice u/s. 154 issued for including the said items - CIT directed the AO to recompute the income under the MAT provisions and to include the above items Held that:- We find that while completing the original assessment the AO had called for details of 115 JB computation in the notice issued u/s. 142 (1) of the Act and the assessee had filed the requisite details. After considering the available material the AO had passed the original order. Not only this, later on he issued a notice u/s. 154 to include the same items for computing book profit, that the assessee had filed detailed reply in that regard. In the circumstances,we are of the opinion that the AO had applied his mind while passing the original order and dropping the rectification proceedings. We also find that the CIT had directed the AO to make the additions. Thus, he has left the AO with no option but to make additions.The provisions of section 263 of the Act permit the CIT to revise the orders which are erroneous and prejudicial to the interest of revenue but it does not give unbridled power to the CIT to take over the power of the AO and to decide the issue at his end. The provisions of section 115JB of the Act,were introduced in the Act with specific purposes. While computing the income under the said section certain items are to be added and certain items are to be deducted. AO or the assessee cannot travel beyond the Laxman Rekha drawn by the section itself. The disputed four items are not part of the list appearing in the section. Therefore,in our opinion,there was no justification for the CIT to use his revisionary powers in the case under consideration. It is to be remembered that the accounts of the assessee were audited by the C&AG and by a special auditor.They had not found any defect in the accounts prepared by it. Considering the above,we are not able to persuade ourselves to endorse the action taken by the AO u/s. 263 of the Act. - Decided in favour of the assessee.
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