The Commissioner Of Income Tax-7 v. M/S.sabero Organics Gujarat Ltd.,Mumbai

ttm IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.4060 OF 2010 The Commissioner of Income Tax-7 .. Appellant Vs. M/s.Sabero Organics Gujarat Ltd.,Mumbai .. Respondent. Mr.Suresh Kumar for the appellantMs.Vasanti B. Patel for the respondent. CORAM: J.P. DEVADHAR & K.K. TATED, JJ.DATE: 9TH SEPTEMBER, 2011. P.C. 1. Whether on the facts and in the circumstances of the case, the ITAT was justified in holding that the re-opening of the assessment under section 148 of the Income Tax Act was invalid, is the question raised in this appeal.was justified in holding that the re-opening of the assessment under section 148 of the Income Tax Act was invalid, is the question raised in this appeal. 2.The assessment year involved herein is A.Y. 1999-2000. 3. The assessment order passed for A.Y.1999-2000 under Section 143(3) of the Act was sought to be reopened on the ground that as per the P & L A/c and balance sheet submitted by the assessee in accordance with the Company Law, the assessee had a profit of Rs.1,05,53,225/- whereas, in the original assessment the income computed is loss.of the Act was sought to be reopened on the ground that as per the P & L A/c and balance sheet submitted by the assessee in accordance with the Company Law, the assessee had a profit of Rs.1,05,53,225/- whereas, in the original assessment the income computed is loss. 4. The ITAT has recorded a finding of fact that in the present case, even the original assessment was computed under section 143(3) by taking the book profit at Rs.1,05,53,225/-. Thus, when the income in the original assessment was computed by taking the starting figure at Rs.1,05,53,225/-, there was no question of computing income again in the reassessment proceedings by taking the starting figure at Rs.1,05,53,225/- once again. The CIT (A) as also the ITAT have held that the loss computed by the Assessing Officer by taking the starting figure at Rs.1,05,53,225/- was proper and that the loss would be higher if the deduction allowable under Sections 80IA and 80 HHC are also taken into consideration in computing the book profits as per Section 115JA (vi) and (vii) of the Act. 5. In this view of the matter, the decision of the ITAT in holding that there was no income which has escaped assessment and therefore reopening of the assessment is bad in law cannot be faulted. there was no income which has escaped assessment and therefore reopening of the assessment is bad in law cannot be faulted. 6. Appeal is accordingly dismissed. (J.P. DEVADHAR, J.) (K.K. TATED, J.)