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TMI Blog2023 (11) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of manufacturing of adhesive, sealant and construction chemical etc. The Return of Income for the A.Y. 2018-19 was filed declaring total income of Rs.. Nil. The return was processed u/s.143(1) of the Act and income was assessed at Rs.. Nil. Subsequently, the case was selected for scrutiny under Faceless E-Assessment Scheme, 2019 for the reasons discussed in Assessment Order. Accordingly, notices u/s. 143(2) and 142(1) of the Act were issued and in response Ld. AR of the assessee submitted relevant information as called for. The assessment u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act was passed on 11.02.2021 assessing total income at Rs.. 50,67,670/- by making addition of Rs.. 55,301/- on account of disallowance u/s 14A of the Act, dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation u/s 115JB is correctly made and there is no error in it. The assessee also expressed surprise on the figure of Book Profits at Rs.. 1,80,91,596/- mentioned for the above said notice as the same is not appearing in the profit and loss account of the assessee company. 5. In contradiction to the above view of the assessee, Ld. Pr.CIT vide letter dated 28.03.2023 explained that the figure of Rs.. 1,80,91,596/- is, in fact, the figure of book profits of the Consolidated Financial Statements of Polygel Industries Pvt. Ltd., and the amount which the assessee was speaking of, pertains to the Standalone Financial Statements of Polygel Industries Pvt. Ltd. Thus, the assessee has contradicted themselves on the impugned issue. He observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that were required in this case. 3) The Ld. PCIT erred in considering the books profit to be Rs. 1,80,91,596/- (book profits as per consolidated financials of the appellant) instead of Rs. 68,53,323/- (actual book profits of the appellant as per the standalone financials of the appellant) which was even submitted to the Ld. PCIT in submission dated 28/03/2023, however, it was not considered by the Ld. PCIT. 4) The appellant craves leave to amend, alter or add a new ground which may be necessary at the time of hearing. B. Tax effect relating to each Ground of appeal: NIL since the appeal is filed against very order of PCIT ordering reopening of assessment. 8. At the time of hearing, Ld. AR brought to our notice relevant facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance sheet which is adopted by the Assessing Officer is just and proper. Therefore, there is no mistake apparent on record and also there is no prejudicial to the interest of the Revenue. 11. On the other hand, Ld. DR relied on the order passed by the Ld.Pr.CIT u/s. 263 of the Act. 12. Considered the rival submissions and material placed on record, we observe that while examining the assessment records Ld. Pr.CIT has observed that the profit declared by the assessee in its standalone financial statements is Rs.. 68,53,323/- whereas the profit declared in the consolidated financial statements is Rs.. 1,80,91,596/-, since he is not convinced with the submissions of the assessee and the profit adopted by the Assessing Officer for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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