TMI Blog2014 (1) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... r decrease of certain items specifically provided for in the Explanation to S.115J. A deduction u/s 80-IC, is not an item of adjustment in Explanation I to S.115 JB - While so, to claim reduction of the amount deductible u/s 80-IC, while computing book profits u/s 115 JB, is not in accordance with the apparent reading of the provisions of S.115 JB - such a claim is an incorrect claim and this is apparent from information in the return as defined in the Explanation (a) to S.143(1)(a)(ii) of the Act - the AO is correct in making adjustment u/s 143(1) - the return is processed by a computer or by the Officer himself, does not make a difference, computerized processing is only an aid to the AO - computation of book profits u/s 115 JB of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble under Section 115 JB of the Income Tax Act, 1961. The return was processed under Section 143(1) of the Income Tax Act, 1961 by the Centralised Processing Centre (CPC), Bangalore on 17.03.2011. In the intimation issued subsequent to the processing of the return, the book profit was deemed to be the total income and tax thereon @ 15% i.e. Rs.3,39,75,188/- was computed. In other words, the provision of MAT under Section 115 JB of the Income Tax Act, 1961 was applied while processing the return under Section 143(1) of the Income Tax Act, 1961. Aggrieved against this, the assessed has preferred the present appeal." 3. Before the Ld.CIT(A), the assessee contended that the scope of powers of the AO while processing a return under Section 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atural justice. 5. The order of the Ld.CIT(A) be set aside and that of the Assessing Officer be restored." 4. The Ld.DR submitted that the AO is empowered to make adjustments u/s.143(1) of the Income Tax Act, 1961. He submitted that the processing is done through computer and as the issue is an apparent mistake committed by the assessee while filing its return of income and the central processing unit has made the said adjustment to correct this apparent mistake. He referred to sec.143(1)(a)(ii) and submitted that if an incorrect claim is made and when such incorrect claim is apparent and from any information in the return, the AO is authorized to make an adjustment. 5. The Ld.Councel for the assessee Mr.Sanjay Nath submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an item, which is inconsistent with another entry of the same or some other item in such return; (ii) in respect of which the information required to be furnished under this Act to substantiate such entry has not been so furnished; or (iii) in respect of a deduction, where such deduction exceeds specified statutory limit which may have been expressed as monetary amount or percentage or ratio or fraction.' 8. A plain reading of the same shows that u/s 143(1)(a)(ii), the AO can compute the total income or loss, after making adjustment of incorrect claim, if such incorrect claim is apparent from any information in the return. Explanation (a) explains what is "an incorrect claim apparent from any information in the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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