2016 (3) TMI 1390

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..... Ld. CIT(A) has erred in quashing the action initiated u/s.147 of the Income Tax Act, 1961 by the Assessing Officer in the interest of protecting revenue. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing the AO to allow to the assessee the rebate u/s 88E when tax liability was determined u/s 115JB of the Income Tax Act. 3. On the facts and in the circumstances of the case and in law, the impugned order of the Ld. CIT(A) is contrary to law and consequently merits to be set aside and that of the Assessing Officer be restored". 2. At the time of hearing, none appeared on behalf of the assessee nor any adjournment letter was filed, hence we proceed to decide the appeal ex-parte qua the .....

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..... assessee's contention before the AO was that, it has reduced the rebate under section 88E while calculating the computation of book profit under section 115JB. Thus, on total taxable income of Rs. 16,13,39,460/- tax of Rs. 4,84,01,838/- was calculated and from that amount of Rs. 4,63,93,679/- was reduced on account of rebate under section 88E, resulting into net tax liability of Rs. 22,55,185/- which was offered in the ROI. Not only that, such a tax calculation was duly accepted by the AO under section 143(3) and, therefore, such a reopening is bad in law. However, the Ld. AO did not agree with the contention of the assessee and held that no rebate can be allowed while computing any tax liability under section 115JB. 4. In the first appel .....

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..... the book profit under section 115JB was there before the AO and AO after completing the assessment under section 143(3) has computed the tax liability. Now after the expiry of 4 years from the end of the relevant assessment year, the said assessment has been sought to be reopened in utter violation of statutory limitation as given in the proviso to section 147. Conditions precedent for lifting the ban of 4 years time limit under proviso to section 147 is that, if the assessment has been completed under section 143(3) then reopening of the assessment can be done only when there is failure on the part of the assessee filed a return under section 139 or there is failure on the part of the assessee to disclose fully and truly all material facts .....

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