TMI Blog2006 (7) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... ing not in accordance with law without appreciating that the income chargeable to tax amounting to Rs. 46,94,202 for the assessment year 1997-98 got under assessed by way of omission to increase the book profit by the share of loss of the partnership firm debited to profit and loss account while computing the total income as per the provisions of section 115FA of the Income-tax Act." The Ld. Departmental Representative submitted that reopening of assessment under section 148 of the Act was done in this case within 4 years of the completion of the assessment on the basis of information received by the Assessing Officer after recording of the reasons for reopening the assessment by the Assessing Officer. He submitted that the income chargea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide order dated 14th December, 1999. The fact of share of loss of the assessee from a registered firm M/s. Paks Trade Centre, amounting to Rs. 46.94 lakhs was well within the knowledge of Assessing Officer at the time of framing of the original assessment as the same was added back for computation purposes in the assessment order. In our opinion, it cannot be said that the share of loss of the assessee from a partnership firm debited to profit and loss account while computing the total income as per the provisions of section 115JA of the Act, is not a debatable point and no two opinions can be possible on the issue. The case law cited by the assessee supports its case. In these facts of the case, we hold that this is a case of mere change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Chapter III applies. He submitted that the word "income" includes "loss" also as per number of decisions of the various Tribunals on this issue. He submitted that sub-clause ( ii ) to Explanation to section 115JA of the Act applies to the case of the assessee which refers to the amount of income to which any of the provisions of Chapter III applies, if any such amount is credited to the profit and loss account. The Ld. Departmental Representative submitted that even on merits of the case, the addition was rightly made by the Assessing Officer for computing the income in accordance with the special provision relating to assessment of certain companies in accordance with section 115JA of the Act. The Ld. Counsel for the assessee submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of certain companies chargeable to tax for the relevant previous year shall be deemed to be an amount equal to 30 per cent of such book profit. These, being special provisions applicable to certain companies have to be strictly applied and income of the assessee has to be computed in accordance with "Book Profit" of the assessee and the working of the "book profit" has to be made as per the provisions of Chapter XII-B of the Act. The proposition that the word "income" includes "loss" is not applicable while computing the "book profit" in accordance with the provision of Chapter XII-B of the Act. We find that the provision of sub-clause ( f ) to Explanation to section 115JA of the Act relates to the amounts of "Expenditure" rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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