Case Law Details
Mersen India Pvt. Ltd. Vs JCIT (ITAT Bangalore)
In the present case admittedly the assessee filed original return of income based on unaudited accounts within the due date of filing i.e. on 30.09.2008. Later the assessee filed the Revised Return of Income on 1.4.2009 which is the basis of audited books of accounts which is within the due date prescribed under Section 139(5) of the Act. The assessee also explained the reasons for filing the Revised Return of Income that there was change over in the Accounting System during the year under consideration and it took time for the completion of accounts thereby auditing of the same. These facts are not disputed by the Department. However, the Assessing Officer made additions towards the difference between the income in original return and revised return at Rs.84,49,131 giving various technical reasons. In our opinion, unless and until the Assessing Officer rejected the Revised Return on the basis of discrepancies in Books of Accounts it is not possible to make such an addition. If there is any defect in the Books of Accounts he specifically point out the same and make specific addition. Being so, when the Books of Accounts are duly audited and approved by the AGM, the assessment has to be completed on the basis of Revised Return. There is no scope of taking the difference in income declared in the original return and revised return as additional income of the assessee. We are completely in agreement with the contention of the ld. Counsel for the assessee that the Assessing Officer cannot consider the income declared in the original return based on the unaudited books of accounts over the income declared in revised return based on the audited books of accounts. We direct the Assessing Officer to complete the assessment on the basis of the Revised Return based on the audited books of accounts. This ground of appeal is allowed.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Bangalore dt.30.01.2012 for the Assessment Year 2008-09.
2. The assessee has raised the following grounds of appeal :
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