TMI Blog2017 (1) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... the original order. Not only this, later on he issued a notice u/s. 154 to include the same items for computing book profit, that the assessee had filed detailed reply in that regard. In the circumstances,we are of the opinion that the AO had applied his mind while passing the original order and dropping the rectification proceedings. We also find that the CIT had directed the AO to make the additions. Thus, he has left the AO with no option but to make additions.The provisions of section 263 of the Act permit the CIT to revise the orders which are erroneous and prejudicial to the interest of revenue but it does not give unbridled power to the CIT to take over the power of the AO and to decide the issue at his end. The provisions of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the assessee at rupees nil under the normal provisions and at ₹ 311,58,55, 000/- u/s. 115 JB of the Act. 2. Perusal of the assessment records showed that following four items were not created to the P L account of the assessee i. Interest income on decommissioning fund - ₹ 50.02 Crores ii. Levy for year transferred from sale of decommissioning - ₹ 25.46 Crores iii. Interest income on renovation and modernisation fund(R M Fund) -Rs. 10.46 Crores iv. Interest income on research and development(R D) - ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale of decommissioning, interest income on renovation and modernisation fund and the interest income on research and development was erroneous and was prejudicial to the interest of revenue. Setting aside the order of the AO, the CIT directed him to that back the above items to the profit as per the P L account to arrive at the book profit u/s. 115 JB of the Act. 3. During the course of hearing before us, the Authorised Representative(AR) contended that the assessee had furnished all the documents called for by the AO during the assessment proceedings, that the AO had applied his mind while computing the income under the normal provisions as well as u/s. 115 JB of the Act, that the AO had issued a notice u/s. 154 of the Act on 15/05/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or decommissioning,R M Fund,R D Fund ,that while computing the book profit u/s. 115 JB he did not include those items, that later on he issued a notice u/s. 154 of the Act for including the said items, the CIT had issued a notice u/s. 263 of the Act, that he directed the AO to recompute the income under the MAT provisions and to include the above items.We find that while completing the original assessment the AO had called for details of 115 JB computation in the notice issued u/s. 142 (1) of the Act and the assessee had filed the requisite details (Pg. 7,10-13 of the paper book). After considering the available material the AO had passed the original order. Not only this, later on he issued a notice u/s. 154 to include the same items for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961, has only the power of examining whether the books of account are certified by the authorities under the Companies Act as having been properly maintained in accordance with the Companies Act.The Assessing Officer, thereafter, has the limited power of making increases and reductions as provided for in the Explanation to section 115J . The Assessing Officer does not have the jurisdiction to go behind the net profits shown in the profit and loss account except to the extent provided in the Explanation. The use of the words in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act in section 115J was made for the limited purpose of empowering the Assessing Officer to rely upon the authentic statement of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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