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2017 (1) TMI 1591 - AT - Income TaxRevision u/s 263 - under statement of book profit under section 115JB - Held that:- The assessee has claimed the adjustment under the head "provision" which when understood on ordinary and natural sense will give rise to presumption of it being a provision. It was for the assessee to rebut the presumption by proper explanation which has not been done. No enquiry on it being different from mere provision has been conducted by the AO. The order passed by the AO in discharge of its quasi-judicial functions is clearly erroneous and prejudicial to the interest of the Revenue as noted. Certain explanation has been given by the assessee on merits to justify that it is actual diminution and not mere provision. However, that will become relevant only at the stage of making assessment therein after requisite enquiry in this regard. Thus at the threshold, for invoking the jurisdiction, the conclusion of the CIT of the order being erroneous and prejudicial to the interests of the Revenue cannot be faulted. Referring to the second limb of arguments on behalf of the assessee that the amendment to section 115JB as per clause(i) thereto has been made with retrospective effect after filing of the return of income and therefore the assessment passed based on the return of income as per the law as stood at the time of filing of the return could not have been disturbed by the AO we do not find any merit in this line of argument either. The record for the purpose of section 263 as per Explanation-1 thereof would mean all records relating to assessment proceedings available at the time of examination by the Commissioner. Therefore, any development in law which has taken place even after the assessment also can be taken cognizance of by the CIT in exercise of power under section 263 of the Act. - Decided against assessee.
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