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TMI Blog2021 (12) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... dering the return filed in response to notice under section 148 declaring total income of Rs. 3,22,254/- and assessed the income on the basis of original return filed declaring Rs. 1,77,98,254/-under section 139(1) of the Income Tax Act, 1961. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the total income at Rs. 1, 77,98, 254/- without any addition being made on reasons recorded under section 147 of the Income Tax Act, 1961. 3. On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming Rs. 1,74,76,000/- without considering that the profits earned on the project were offered for tax in earlier assessment years as same income cannot be taxed twice. 4. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the year. Pertinent to state that assessee is following the percentage completion method and has been offering to tax the income on the basis of percentage of completion of work every year. According to the method of percentage completion method the assessee had already offered to tax of Rs. 1,74,76,000/- from A.Y. 2009-10 to A.Y. 2012-13. 5. Since the total profits accrued on the project from AY 2009- 10 to 2012-13 were Rs. 1,77,98,254/- therefore the profit to be declared during the year was to be Rs. 3,22,254/-, however, by mistake the assessee returned the total profit of Rs. 1,77,98,254/- resulting into income being retuned twice to the tune of Rs. 1,74,76,000/-. The assessee also moved rectification application on 07.04.2016 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rn under the Act. The Ld. CIT(A) noted that as per the tax audit report dated 05.09.2013 the net profit as per P&L account was shown at Rs. 1,77,98,254/- whereas the balance sheet and P&L Account signed on 21.11.2018 showed a current profit of Rs. 3,22,254/-. The Ld. CIT(A) held that assessee has not filed any return in response to notice under section 148 of the Act and held that the reassessment proceedings can not be taken advantage and is not for the purpose of making claims which were not made in the original return of income and thus dismissed the appeal of the assessee. 7. After hearing both the parties and perusing the material on record, the undisputed facts are that the assessee is following percentage completion method for retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponse to notice under section 148 the assessee filed the return of correct income of Rs. 3,22,254/- however, the AO rejected the same on the ground that the assessee has reduced its income in the return filed in response to notice under section 148 of the Act which is not acceptable and thus took the income of Rs. 1,77,98,254/- which was returned as per original return of income filed on 12.09.2013 and assessed vide order dated 29.03.2016. Now the main issue before us is whether the order of Ld. CIT(A) is correct in rejecting the genuine claim of the assessee that income can not be taxed twice as has been done in the present case. We also note that Ld. CIT(A) has gone a step ahead than the AO stated that return filed in response to section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es amounting to Rs. 38,00,500/- has not been added in the reassessment order and once the item proposed in the reasons recorded under section 148(2) did not find place in the assessment order, no other addition can be made and income returned as per return in response to notice under section 148 of Rs. 3,22,254/- has to be accepted. The case of the assessee finds support from the decision of the jurisdictional High Court in the case of CIT vs. Jet Airways (India) Ltd. in ITA No.2328 of 2011 order dated 6th May 2014. In view of these facts, we are inclined to set aside the order of Ld. CIT(A) and direct the AO to reduce Rs. 1,74,76,000/- from the income of the assessee. Accordingly, the appeal of the assessee is allowed. 10. At the time of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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