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2019 (12) TMI 905 - AT - Income TaxRevision u/s 263 - tax liability under the normal provision of the Act and under section 115JB Minimum Alternate Tax - HELD THAT:- Tax liability of the assessee under the normal provisions of I.T Act comes at ₹ 42,93,91,857/-(after adjusting the disputed amount by ld PCIT), whereas the tax liability u/s 115JB-MAT comes to the tune of ₹ 53,51,67,527/- which is more than normal income tax liability. As per the scheme of the Act, the assessee is supposed to pay the income tax as per Minimum Alternate Tax under section 115JB which is more than the tax liability computed under the normal provision of the Act. If for the time being, we presume that the issue discussed by the ld. PCIT is correct and after giving the effect of the issue raised by the ld. PCIT, even then the tax liability under the normal provision would be below than the tax liability u/s 115JB of the Act therefore there is no loss to the Revenue. Therefore, we can conclude that the order of the Assessing Officer may be erroneous but it is not prejudicial to the interest of the revenue. In order to exercise the jurisdiction u/s 263 of the Act, the ld PCIT needs to satisfy two conditions namely, i) the order is erroneous and ii) the order is prejudicial to the interest of revenue. In the assessee`s case under consideration one of the conditions “prejudicial to the interest of the revenue” is not satisfied therefore the order passed by the ld. PCIT needs to be quashed. As the issue is squarely covered in favour of the assessee by the decision of M/s ARL Infratech Ltdin [2018 (1) TMI 1552 - ITAT JAIPUR] and there is no change in facts and law and the Revenue is unable to produce any material to controvert the aforesaid findings of the Division Bench (supra). We find no reason to interfere in the said order of the Division Bench, therefore, respectfully following the judgment of the Division Bench we conclude that order passed by the assessing officer is not prejudicial to the interest of Revenue, hence we quash the order of ld PCIT under section 263 of the Act. - Decided in favour of assessee
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