April 2019

Section 154 What is permissible is merely rectification of an obvious and patent mistake apparent from record and not wholesale review of an earlier order.

Jagdish T. Punjabi | Devendra Jain | Tejaswini Ghag
Chartered Accountants

4.  [2019] 103 taxmann.com 154 (Mum.) Maccaferri Environmental Solutions (P.) Ltd. vs. ITO ITA No.: 7105/Mum./2014 A.Y.: 2010-11 Dated: 12th December, 2018

 

Section 154 What is permissible is merely rectification of an obvious and patent mistake apparent from record and not wholesale review of an earlier order.

 

FACTS


The assessee, a private limited company, filed its return of income declaring total income at NIL after setting off brought forward losses under the normal provisions of the Act. Further, since the book profit determined by the assessee was a negative figure, there was no liability to pay MAT on book profits u/s. 115JB of the Act and the same was accordingly declared and disclosed in the return of income filed by the assessee. The case was selected for scrutiny and assessment was completed u/s. 143(3) of the Act determining the total income at NIL. Subsequently, the Assessing Officer (AO) issued notice u/s. 154 of the Act so as to rectify the mistake of accepting the book profits as such and thereby determined the book profits at Rs. 6,95,57,438.

 

Aggrieved, the assessee preferred an appeal to the CIT(A) who upheld the action of the AO.

 

Aggrieved, the assessee preferred an appeal to the Tribunal,

 

HELD


The Tribunal made a reference to the well settled po

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