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2015 (1) TMI 7 - AT - Income TaxValidity of notice for reopening of assessment u/s 147 r.w 148 Reopening made because the provisions for FBT and disallowance made u/s 14A were not added to the book profits for the purpose of calculation of MAT - Held that:- CIT(A) while holding that there was no income which has escaped assessment so as to issue notice u/s 148 of the Act has given a finding that during the course of scrutiny, the aspect of computation of book profit have been analyzed and after due application of mind, the AO had determined the figure of book profit for the purpose of computation of minimum alternative tax - the reopening to be a case of change of opinion and therefore invalid - no material has been placed on record to controvert the findings of CIT(A) in Cliantha Research Ltd. Versus Deputy Commissioner of Income-tax, Ahmedabad Circle - I [2013 (7) TMI 452 - GUJARAT HIGH COURT] it has been held that where during original assessment assessee's claim was processed at length and after calling for detailed explanation same was accepted, merely because a certain element or angle was not in mind of AO while accepting such a claim, could not be a ground for issuing notice u/s 148 for reassessment thus, the order of the CIT(A) is upheld Decided against revenue. Adjustment to book profit - MAT - Validity of direction made to not add the FBT liability Held that:- CIT(A) while deleting the addition has inter alia held that the issue of considering FBT for the purpose of MAT is directly covered in favour of the Assessee by the Circular of the Board dated 29.08.2005 which inter alia holds that FBT whether or payable or provision thereof is not required to be added back while computing book profit u/s. 115JB of the Act - the liability of FBT having been crystallized and quantified in the books of account, it cannot be treated as contingent liability and therefore cannot be added back to the amount of book profit thus, the order of the CIT(A) is upheld Decided against revenue. Deletion of disallowance u/s 14A from being added to book profit Held that:- CIT(A) after relying on the decision of Apollo Tyres vs. CIT [2002 (5) TMI 5 - SUPREME Court] has held that the amount of disallowance made u/s 14A cannot be added to book profit while working out the tax liability under provisions of MAT - revenue has not brought any material on record to controvert the findings of CIT(A) nor has brought any contrary binding decision in its support thus, there is no reason to interfere in the order of the CIT(A) Decided against revenue.
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