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2018 (12) TMI 1974 - AT - Income TaxRectification u/s 154 - disagreement with the determination of book profit made by the assessee under Section 115JB - book profit u/s 115JB determined at amount as against NIL determined by the assessee - dHELD THAT:- When the assessee carried the matter in appeal before the CIT(A), he assailed the action of the AO on points of law as also on facts. In particular, assessee pointed out that the necessary computation of book profit u/s 115JB was duly available in Form 29B at the time of assessment before the AO and in terms thereof, no liability arose. Therefore, if AO was to take a different view, the same could not be done by invoking Sec. 154 of the Act, which permitted the AO merely to rectify apparent mistakes. Points of difference between computation of book profit made by the Assessing Officer and that by the assessee were such, which involved debatable issues, and thus was outside the purview of Sec. 154 of the Act. So far as the assessee was concerned, it had cleared its stand which was very much before the Assessing Officer when he passed the original assessment order. Thus, the error of assessee not having declared its manner of computation of book profit under Section 115JB of the Act is not something which is reflected by the record. No doubt, the CIT(A) is justified in referring to the amendment made by the Finance (No. 2) Act, 2009 prescribing that Provision for bad and doubtful debt is not deductible for computing book profit, yet that is not the basis on which the Assessing Officer invoked the jurisdiction under Section 154 of the Act. Secondly, even if this aspect of the matter is held in favour of the Revenue, yet the other two aspects brought out by the assessee before the CIT(A), namely, non-consideration of prior period items of expenses and non-consideration of adjustment for lower of depreciation or loss, are issues which are well supported and consistent with the requirement of Sec. 115JB of the Act; and, the same have been unjustly denied by the lower authorities. If these aspects are kept in mind, the determination of book profit made by the Assessing Officer under Section 115JB of the Act is clearly untenable.Appeal of the assessee is allowed.
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