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TMI Blog2008 (3) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... ighteen appeals arise out of the common order of the Income-tax Appellate Tribunal, and have been admitted by different orders of this Court, by framing following substantial questions of law: "1. Whether an intimation of tax computation issued under Section 143 (1) by the Assessing Officer on the claim to deduction under section 80-IA/80-IB made by the assessee in his return, could be rectified under Section 154 for raising a demand by invoking section 115JA/115JB of the Income Tax Act, 1961, as existed during the relevant assessment year? 2. If so, whether in absence of any computation of book profit as defined under Explanation to Section 115JA/115JB on record, the Assessing Officer could assume the amount of Book Profit for invoking 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of Section 143(1) and 154 have been amended by the Finance Act of 1999, whereby, the provisions were modified, and prima facie adjustments, additional tax, and issue of limitation etc., were done away with. Then, after the amendment, mere filing of the return by itself would complete the process of assessment, limiting its scope only to raise demand and issue refund on the basis of the return filed, except for issuing intimations where any sum is payable by the assessee or refund is due to him, the acknowledgments shall be deemed to be intimation, and simultaneously, amendments were also made in Section 154 to provide for rectification of intimation or deemed intimation referred to in the proposed sub-section (1) of Section 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the backward areas, and for the assessment years 1998-99 to 2000-01, the Assessing Officer taxed book profit as per the provisions of Section 115JA by invoking the provisions of Section 154, and charged interest under Sections 234A, 234B and 234C. While, for the assessment years 2001-02 to 2002-03, the Assessing Officer taxed the assessee on book profit as per the provisions of Section 115B by invoking the provisions of Section 154, and also charged interest. Then, after noticing the contention of the assessee on the anvil of Section 115JA, it was held, that the Tribunal was convinced with the arguments and submissions of the authorized representatives of the assessee, because a perusal of the impugned order passed under Section 154 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l intimation under Section 143(1). The provisions of Sections 115JA and 115JB were not taken into consideration. True, it is, that the provisions of Section 115JB have been inserted with effect from 1.4.2001, however, the provisions of Section 115JA were inserted since 1.4.97 and, therefore, that provisions did apply to all the assessment years very much, but then, that is not the end of the problem. 8. A bare reading of Section 115JA does show, that sub section (1) starts with non obstante clause, and provides, that notwithstanding contained anything in any other provision of this Act, where in the case of an assessee, being a company, the total income, as computed under this Act in respect of any previous year relevant to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding the total income of the assessee is less than 30 per cent. of the alleged "book profit", the "book profit" is to be arrived at after deducting the amounts including the amount provided in clause 5 as noted above. 10. It is not in dispute, that while making the order under Section 154, the learned Assessing Officer has not taken into consideration this clause. Obviously under Section 80-IB and 80-IA, the assessee is entitled to 100 per cent. exemption, being an undertaking situated in the backward State of District. Thus, on the other hand, the order made by the learned Assessing Officer purportedly under Section 154, rather suffers from error, apparent on the face of the record, having been passed without considering the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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