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TMI Blog2020 (8) TMI 671X X X X Extracts X X X X X X X X Extracts X X X X ..... tion filed by the assessee company claiming a deduction of Rs. 9,00,00,000/- on account of revision of financial accounts. 2. That on the facts and circumstances of the case and in law the Ld. CIT(A) erred in not appreciating contents of the General Circular No. 1/2003 dated 13.01.2003 issued by the Ministry of Finance and Company Affairs, which allows the company to reopen and revisit its account after their adoption in annual general meeting and filing with the ROC only in case of any technical requirement of any law. The assessee company did not put forward any such requirement of any law. 3. That on the facts and circumstances of the case and in law the Ld. CIT(A) erred in ignoring the comments of the auditor, Sh. S.B. Aggarwal, CA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with M/s Estate Investment Solution and Rs. 9,00,00,000/-. On this account had been incorporated as sale in assessee's books of accounts. But as per the guidelines issued by the State Government of Punjab for Mega Project, no money could be collected from the proposed buyers till such time layout/zoning plans are cleared from the competent authority. Therefore, the assessee company created the sale account and debited the account of M/s Estate Investment Solution and grouped under Sundry debtors. As the project become redundant, the management during the Financial Year 2008-09, decided to require its rights of the areas sold to M/s Estate Investment Solutions by mutually terminating the Agreement to sale. The cancellation of the Agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interpretation of the said Circular that the proposed revision of the financial statements made in accordance with letter and spirit of the said Circular thereby the revision of financial statement is in accordance with the provisions of the Companies Act, 1956. The Assessing Officer observed that the audited revised accounts including balance-sheet profit and loss account their schedules etc are not accepted. Thus, the Assessing Officer assessed the income of the assessee on the basis of its original accounts. The declared income from house property of Rs. 1,00,800/- and NIL business income after setting of off brought forward business losses of Rs. 8,57,40,458/- was accepted. 4. Being aggrieved by the assessment order, the assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that particular assessment year could not be implemented and thus pre-launch agreement which is banned by the guidelines of the State Government of Punjab was not tenable during that particular assessment year/present Assessment Year 2007-08. The assessee with the full awareness of the company procedure has revised audit account through AGM as per the guidelines issued by Circular No. 1 of 2003 issued by Ministry of Finance and Company Affairs. Thus, the CIT(A) has rightly allowed the appeal of the assessee. 7. We have heard both the parties and perused the material available on record. It is pertinent to note that the assessee has revised the audited account and has given the relevant documentary evidence before the CIT (A) upon which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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