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2021 (4) TMI 633 - AT - Income TaxPower of CIT(A) enhancing the income of the assessee u/s. 251(1)(a) r.w.s. 251(2) - CIT-A enhanced the assessment by computing book profits U/s. 115JB - HELD THAT:- CIT(A) cannot touch or delve on any issue which does not arise from the order of assessment and which was outside the scope of or an issue which is not a subject matter the order of the assessment. In the case on hand, the issue of computation of book profits U/s. 115JB of the Act was not an issue that was a subject matter during the course of assessment proceedings. This issue of computation of book profits U/s. 115JB of the Act, does not arise from the order of the assessment. Section 115JB of the Act, is a "self contained code" as per the CBDT Circular No. 13/2001, dt. 09/11/2001 and was outside the scope of the order of assessment passed by the Assessing Officer U/s. 143(3) of the Act on 21/12/2015. The Ld. CIT(A), in our view, is not empowered to enhance the assessment by computing book profits U/s. 115JB of the Act, as it is a separate code. Thus, we uphold this contention of the assessee and adjudicate this issue on powers of enhancement of the CIT(A), on the facts and circumstances of the case, in favour of the assessee. Thus, we quash the enhancement made by the Ld. CIT(A). MAT computation applicability - Section 115JB applicability to assessee company - admittedly, the gross taxable income and the total income as well as the tax payable are Nil - HELD THAT:- This issue whether book profits can be computed U/s. 115JB of the Act, when the GTI and TI of the assessee are Nil and no taxes payable, is adjudicated in favour of the assessee, by respectfully following the decision of the Hon'ble Jurisdiction High Court own case on this issue. No other arguments are raised before us. - Decided in favour of assessee.
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