IN THE ITAT MUMBAI BENCH ‘A’
Lok Housing and Constructions Ltd.
Versus
Assistant Commissioner of Income-tax-8(3)(OSD)
IT Appeal No. 8485 (Mum.) of 2011
[Assessment Year 2007-08]
October 23, 2012
ORDER
P.M. Jagtap, Accountant Member – This appeal filed by the assessee is directed against the order of learned CIT(Appeals)-17, Mumbai dated 31-10-2011 whereby he upheld the order of the AO treating the revised return filed by the assessee as invalid and assessing the total income of the assessee at Rs.135.56 crores on the basis of original return filed by the assessee.
2. The relevant facts of the case giving rise to this appeal are that the assessee is a listed company engaged in the business of development of real estate and construction. The return of income for the year under consideration i.e. assessment year 2007-08 which was due to be filed by 30th Nov., 2007 had not been filed by the assessee till 11-09-2008 when a survey u/s 133A of the Act was carried out at its premises. During the course of survey, audited financial statements for the previous year relevant to assessment year 2007-08 were found showing profit before taxation at Rs.142.45 crores. In the computation of total income of the assessee company as made by its accounts staff on the basis of the said financial statements, a sum of Rs.52.55 crores was shown to be payable by the assessee company for assessment year 2007-08 on account of tax as well as interest u/s 234A, 234B and 234C. During the course of survey, statement of Shri Lalit C. Gandhi, Chairman and Managing Director of the assessee company was recorded wherein he accepted that the tax so payable was not paid by the assessee company due to severe financial crunch and the return of income for the year under consideration was also not filed due to non-payment of the said tax. Subsequent to the survey, letters were also filed by the assessee company reiterating its assurance to make the payment of outstanding tax for the year under consideration. Finally, the return of income for the year under consideration was filed by the assessee on 23-09-2008 in response to notice issued by the AO u/s 142(1) on 18-09-2008 declaring total income of Rs.135.47 crores but no payment of tax due thereon was made. The said return filed by the assessee was processed by the AO u/s 143(1) on 22-10-2008. Thereafter a revised return was filed by the assessee company on 01-01-2009 declaring therein its total income at Nil. Along with the said return, revised annual accounts were also filed by the assessee which revealed that the major difference between the original and revised return was on account of cancellation of the following five transactions in immovable property and reversal of income recognition from the said transactions by the assessee :
