| आयकर अपीलीय अिधकरण (cid:7008)यायपीठ कोलकाता , |

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, HON’BLE ACCOUNTANT MEMBER &

SHRI SONJOY SARMA, HON’BLE JUDICIAL MEMBER I.T.A. No. 524/Kol/2023 Assessment Year: 2018-19

G.S. Atwal & Co. (Engg.) Pvt. Ltd. 4B, Little Russell Street Kolkata - 700071 [PAN : AABCG0816E]

V s

Pr. Commissioner of Income Tax - 2, Kolkata

अपीलाथ(cid:7278) (Appellant) (cid:7079)(cid:7004)य थ(cid:7278) (Respondent)

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Assessee by : Shri Soumitra Choudhury, A/R Revenue by : Shri S. Datta, CIT, D/R सुनवाई क(cid:7409) तारीख Date of Hearing : 14/12/2023 /

घोषणा क(cid:7409) तारीख Date of Pronouncement: 22/04/2024 /

आदेश O R D E R /

PER SHRI RAJESH KUMAR, ACCOUNTANT MEMBER :

The present appeal is directed at the instance of the assessee against the order of the Principal Commissioner of Income Tax, Kolkata -2, [hereinafter the “ld. Pr. CIT”] dt. 29/03/2023, passed u/s 263 of the Income Tax Act, 1961 (“the Act”) for the Assessment Year 2018-19.

2. The common issue raised in the various grounds of appeal is against invalid exercise of jurisdiction u/s 263 of the Act thereby passing revisionary order u/s 263 of the Act dt. 29/03/2023, setting aside and revising the assessment framed u/s 143(3)/143(3A) & (3B) of the Act dt. 29/03/2021.

3. Facts in brief are that the assessee filed its original return of income on 19/09/2018 declaring total loss of Rs.4,24,51,417/-. Subsequently, the return was revised on 23/09/2019 declaring total loss of Rs.3,59,34,557/- under the normal provisions and book profit at Rs.1,29,489.40/- u/s 115JB of the Act. The case of the assessee was selected for scrutiny and assessment u/s 143(3) of the Act was framed assessing total loss at Rs. 1,42,34,311/- vide order dt. 29/03/2021. The ld. Pr. CIT, upon examination of the assessment records, observed that the order passed u/s 143(3) of the Act dt. 29/03/2021 is prima facie erroneous and prejudicial to the interest of the revenue, on the ground that the assessee has revised the return of income reducing the amount of loss declared from Rs.4,24,51,472/- to Rs. 3,59,34,557/-/- and also filed revised computation wherein net profit in the profit and loss account is Rs. 71,59,839/- instead of Rs. 8,21,179/- as shown in the profit and loss account for the impugned financial year. The ld. Pr. CIT observed that the assessee has paid MAT at Rs. 8,21,179/- instead on the revised net profit of Rs.71,59,839/- and accordingly, the book profit has been short assessed u/s 115JB thereby rendering the assessment so framed, as erroneous and prejudicial to the interest of the revenue. Accordingly, a notice u/s 263 of the Act was issued on 13/02/2023 giving the showcause to the assessee as to why the assessment should not be set aside and revised for the aforesaid reasons, which was duly replied by the assessee. Finally, the ld. Pr. CIT, after taking into account, the reply of the assessee, set aside the assessment order and directed the Assessing Officer to decide the same afresh after examining the reply of the assessee and its books of accounts.

4. After hearing rival contentions and perusing the material on record, we observe that the observations of the ld. Pr. CIT as to the assessment order passed u/s 143(3) of the Act dt. 29/03/2021 being erroneous and prejudicial to the interest of the revenue appears to be incorrect as the Assessing Officer has correctly brought to tax the MAT u/s 115JB of the Act showing book profit of Rs. /-. We note that even the revised computation is filed by the assessee upon revision of the ITR and net profit has been show in the P&L at Rs. 71,59,839/-. We further notice from the table extracted at page no. 3 of the revisionary order which showed that the assessee has reconciled business loss and unabsorbed appreciation while calculating the book profit u/s 115JB of the Act, the allowance has to be made in respect of business loss or unabsorbed deprecation whichever is less, so even if we take up

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