[aaykarbhavan] Sec 154 cannot be resorted for applying sec 115JB of the Income Tax Act,1961 [1 Attachment]

In the case of Cardinal Drugs Pvt Ltd.Hon'ble ITAT has observed that there was no scope for the A.O. to have resorted to the provision of Section 154 of the Act for the purpose of enhancing the income of the assessee.by stating as under:-

The A.O. on long drawn process of reasoning should not have passed the order under Section154 of the Act. The issue raised by the A.O. in proceeding under Section 154 of theAct is highly debatable which requires the issue to be reconsidered by the A.O.aboutapplicability of the provision of Section 115JB ofthe Act which was notraised by the A.O. in assessment or appellate proceedings. Therefore, A.O. has no power to review his entire assessment order and tomake certain additions which are not part of the record. The assessee has declared all particulars regardingassessment and assessment to be framed under Section 115JB of the Act. When theA.O. has consciously taken the view to frame a regular assessment and madecertain additions, which have been deleted by the ld. CIT(A) and confirmed by theTribunal, the A.O. is not empowered to take a contrary view to review the entireassessment order already framed. It is against thespirit of provision of Section 154 of the Act.

Copy of the Judgement enclosed

 

Regards

Prarthana Jalan

__._,_.___

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