M/s Essen Connectors Pvt. Ltd., Chandigarh v. ITO, Chandigarh

ITA 1063/CHANDI/2010 | 2007-2008
Pronouncement Date: 31-07-2012 | Result: Allowed

Appeal Details

RSA Number 106321514 RSA 2010
Assessee PAN AAACE3655Q
Bench Chandigarh
Appeal Number ITA 1063/CHANDI/2010
Duration Of Justice 1 year(s) 11 month(s) 22 day(s)
Appellant M/s Essen Connectors Pvt. Ltd., Chandigarh
Respondent ITO, Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 31-07-2012
Date Of Final Hearing 24-07-2012
Next Hearing Date 24-07-2012
Assessment Year 2007-2008
Appeal Filed On 09-08-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI T.R. SOOD ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA JUDICIAL MEMBER ITA NO.440/CHD/2011 & ITA NO.1063/CHD/2010 (ASSESSMENT YEAR : 2007-08) ESSEN CONNECTORS PVT. LTD. VS. THE INCOME TAX O FFICER # 22 INDUSTRIAL AREA WARD 1 (2) PHASE II CHANDIGARH. CHANDIGARH. PAN: AAACE3655Q (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.M.KHANNA RESPONDENT BY : SHRI MANJEET SINGH DR DATE OF HEARING : 26.07.2012 DATE OF PRONOUNCEMENT : 31.07.2012 O R D E R PER SUSHMA CHOWLA J.M : BOTH THESE APPEALS FILED BY THE ASSESSEE ARE AGAINS T THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEALS) DATED 07.06.2010 AND 28.01.2011 BOTH RELATING TO ASSESSMENT YEAR 200 7-08 AGAINST THE SEPARATE ORDERS PASSED UNDER SECTION 154 OF THE INC OME TAX ACT 1961 (IN SHORT THE ACT) DATED 26.3.2009 AND 23.6.2009. 2. BOTH THESE APPEALS RELATING TO THE SAME ASSESSEE WERE HEARD TOGETHER AND ARE BEING DISPOSED OFF BY THIS CONSOLI DATED OR FOR THE SAKE OF CONVENIENCE. 3. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE IN ITA NO.440/CHD/2011 ARE AS UNDER: 2 1. THAT THE LEARNED CIT (A) HAS FAILED TO APPRECI ATE THE FACT AND CIRCUMSTANCES OF THE CASE AND HAS THEREBY ERRED IN UPHOLDING THE RECTIFICATION U/S 154 OF THE INCOME TAX ACT 1961. 2. PROCEEDINGS U/S 143(1) WERE RECTIFIED WITHOUT EI THER INTIMATING ABOUT THE PROCEEDING MADE IN-VIOLATION OF SECTION 154 O F THE INCOME TAX ACT 1961. AN APPEAL AGAINST THE SAME ORDER IS PEN DING BEFORE THE HON'BLE ITAT. 3. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE IN ITA NO.1063/CHD/2010 ARE AS UNDER: 1. THAT THE LEARNED CIT (A) HAS ERRED IN CONFIRMI NG THE ORDER OF THE ASSESSING OFFICER PASSED U/S 254 OF THE INCOME TAX ACT 1961. 2. THE ORDER OF THE CIT (A) IS AGAINST THE PRINCIPA L OF LAW AND NATURAL JUSTICE AS THE ISSUE WAS DEBATABLE AND OUTSIDE THE PURVIEW OF SECTION 154 OF THE INCOME TAX ACT 1961. 4. THE ASSESSEE IN THE CAPTIONED APPEALS IS AGGRIEV ED BY THE ORDERS OF THE ASSESSING OFFICER PASSED UNDER SECTION 154 OF T HE ACT FOR VIOLATION OF PROVISIONS OF THE ACT. THE ASSESSEE HAS FILED A N APPEAL BEING ITA NO.1063/CHD/2010 AGAINST THE ORDER PASSED UNDER SEC TION 154 OF THE ACT DATED 26.3.2009 WHICH WAS DECIDED BY THE CIT (APPEA LS) VIDE ORDER DATED 7.6.2010. THIS WAS IN CONSEQUENT TO SUO MOTU ORDER PASSED BY THE ASSESSING OFFICER UNDER SECTION 154 OF THE ACT. 5. THE SECOND APPEAL FILED BY THE ASSESSEE IN ITA N O.440/CHD/2011 IS AGAINST THE ORDER PASSED BY THE ASSESSING OFFICER U NDER SECTION 154 OF THE ACT DISMISSING THE RECTIFICATION APPLICATION MO VED BY THE ASSESSEE WHICH IN TURN IS CONFIRMED BY THE CIT (APPEALS) VID E ORDER DATED 28.1.2011. 3 6. SHRI B.M.KHANNA APPEARED FOR THE ASSESSEE AND SH RI MANJEET SINGH PUT IN APPEARANCE ON BEHALF OF THE ASSESSEE AND PUT FORWARD THEIR CONTENTIONS. 7. THE LEARNED A.R. FOR THE ASSESSEE HAS FILED PAPE R BOOK AND LEARNED D.R. FOR THE REVENUE HAS PRODUCED THE ASSESSMENT RE CORDS. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE BRIEF FACTS RELATING TO THE ISSUE ARE THAT THE ASSE SSEE HAD FILED RETURN OF INCOME DECLARING NIL INCOME AND CLAIMING REFUND OF RS.53 240/- ON 18.10.2007 VIDE ACKNOWLEDGEMENT NO.12201959. THE COPY OF E-RETURN OF INCOME FILED BY THE ASSESSEE IS AVAILABLE ON REC ORD. IN THE SAID RETURN OF INCOME THE ASSESSEE HAD DECLARED INCOME FROM PRO FITS AND GAINS OF BUSINESS AT RS.29 22 101/- AND HAD CLAIMED SET OFF OF BROUGHT FORWARD LOSSES TO THE TUNE OF RS.29 22 102/- AND THE GROSS TOTAL INCOME WAS DECLARED AT NIL AS PER COMPUTATION OF INCOME BEING PAGE NO.7 OF THE RETURN OF INCOME. FURTHER THE ASSESSEE HAD IN THE SAID COMPUTATION I.E. PART-B-TI AT PAGE 9 OF THE RETURN OF INCOME IN COLU MN NO.15 HAD DECLARED THE DEEMED TOTAL INCOME UNDER SECTION 115J B (6 OF SCHEDULE MAT) AT RS.12 91 896/-. UNDER PART B-TTI THE COMPU TATION OF TAX LIABILITY ON TOTAL INCOME IS DECLARED BY THE ASSESS EE IN THE E-RETURN FILED BY IT UNDER WHICH THE TAX PAYABLE ON DEEMED TOTAL I NCOME UNDER SECTION 115JB (7 OF SCHEDULE MAT) WAS DECLARED AT NIL. THE TAX PAYABLE ON TOTAL INCOME IN ITEM-11 OF PART B-TI I.E. UNDER TH E NORMAL PROVISIONS OF THE ACT WAS ALSO DECLARED AT NIL. THE ASSESSEE HAD MADE A CLAIM OF RS.53 240/- ON ACCOUNT OF TDS AS PER COLUMN NO.17 O F PART B-TTI AT PAGE 10 OF THE RETURN OF INCOME. THE ASSESSEE THER EAFTER HAD DECLARED INCOME FROM PROFITS AND GAINS OF BUSINESS UNDER SCH EDULE-BP AT RS.29 22 101/- AT PAGES 12 AND 13 OF THE RETURN FOR MAT. THEREAFTER UNDER 4 SCHEDULE CYLA AT PAGE 16 OF THE RETURN FORMAT THE DETAILS OF INCOME AFTER SET OFF OF CURRENT YEAR LOSSES IS TO BE GIVEN AND UNDER THE HEAD BUSINESS THE ASSESSEE HAD DECLARED THE INCOME OF TH E CURRENT YEAR AT RS.29 22 101/- AND CURRENT YEARS INCOME AFTER SET OFF OF CURRENT YEARS LOSSES WAS ALSO DECLARED AT RS.29 22 101/-. HOWEVE R IN THE NEXT COLUMN I.E. SCHEDULE BFLA THE DETAILS OF INCOME AFT ER SET OFF OF BROUGHT FORWARDED LOSSES OF EARLIER YEARS WAS ALSO PROVIDED AND ASSESSEE HAD DECLARED NIL INCOME AS PER PAGE 16 OF THE RETURN FO RMAT. FURTHER THE ASSESSEE HAD DECLARED TOTAL LOSSES OF RS.58 40 786/ - TO BE CARRIED FORWARDED AT PAGE 17 OF THE RETURN FORMAT. THE COM PUTATION OF MINIMUM ALTERNATE TAX PAYABLE UNDER SEC 115JB OF THE ACT IS PROVIDED UNDER SCHEDULE MAT AT PAGE 20 OF THE RETURN FORMAT AT RS. 1 29 190/-. IN THE ACKNOWLEDGEMENT ACCOMPANYING THE E-RETURN OF INCOME IN COLUMN-4 THE GROSS TOTAL INCOME DEDUCTION UNDER CHAPTER VIA TO TAL INCOME NET TAX PAYABLE INTEREST PAYABLE TOTAL TAX AND INTEREST P AYABLE ARE DECLARED AT NIL AND FURTHER TAXES PAID TAX PAYABLE(BALANCE) AN D REFUND DUE OF RS.53 240/- 9. FROM THE PERUSAL OF THE SAID FORMAT OF RETURN OF INCOME IT APPEARS THAT THERE IS NO COLUMN FOR DECLARATION OF BOOK PRO FITS UNDER SECTION 115JB OF THE ACT IN THE ACKNOWLEDGEMENT ANNEXED TO THE RETURN OF INCOME. THE ASSESSEE IN THE SAID ACKNOWLEDGEMENT H AD DECLARED INCOME AT NIL AND HAD ALSO DECLARED TOTAL TAX PAYABLE AT N IL BUT HAD CLAIMED CREDIT OF TDS OF RS.53 237/- AND ALSO CLAIMED REFUN D OF RS.53 240/-. THE ASSESSMENT RECORDS WERE PRODUCED BY THE LEARNED D.R. FOR THE REVENUE AND ALL THE ABOVE FIGURES HAVE BEEN TAKEN F ROM THE ASSESSMENT RECORDS. THE ASSESSING OFFICER WHILE PROCESSING RE TURN OF INCOME ON 29.10.2008 HAD DETERMINED THE TAX AT RS.10 86 670/- BY TAKING THE ASSESSED INCOME AT RS.28 59 500/-. THEREAFTER THE ASSESSING OFFICER ON 5 ITS OWN MOTION PASSED A RECTIFICATION ORDER UNDER S ECTION 154 OF THE ACT DATED 26.3.2009 UNDER WHICH IT ACKNOWLEDGED THAT TH E ASSESSEE HAD FURNISHED THE RETURN OF INCOME DECLARING NIL INCOME AFTER SETTING OFF OF BROUGHT FORWARD LOSSES. CONSEQUENTLY FRESH COMPUTA TION WAS ISSUED BY WAY OF ORDER UNDER SECTION 154 OF THE ACT DATED 26. 3.2009 UNDER WHICH THE INCOME WAS COMPUTED AT NIL. HOWEVER THE TAX U NDER MAT WAS TAKEN AT RS.1 29 190/- AND TOTAL TAX PAYABLE AFTER INCLUD ING SURCHARGE WAS DETERMINED AT RS.1 44 951/-. THE CREDIT OF TDS OF RS.53 237/- WAS ALLOWED TO THE ASSESSEE AND THE BALANCE TAX PAYABLE WAS DETERMINED AT RS.91 714/- AND INTEREST UNDER SECTION 234B AND 234 C OF THE ACT WAS CHARGED AND TOTAL TAX AND INTEREST WAS DETERMINED A T RS.1 18 027/-. IN THE SAID ORDER PASSED UNDER SECTION 154 OF THE ACT THE ASSESSING OFFICER FURTHER STATED THAT DEMAND OF RS.9 68 643/- TAKEN T O + A/C NO.4. 10. BEFORE THE CIT (APPEALS) THE GRIEVANCE OF THE A SSESSEE WAS THAT THE RECTIFICATION CARRIED OUT UNDER SECTION 154 OF THE ACT WAS BOTH ILLEGAL AND VOID WITHOUT SERVING ANY INTIMATION UNDER SECT ION 143(1) AND ALSO NOTICE UNDER SECTION 154 OF THE ACT AND SECOND GRIE VANCE WAS THAT THE ISSUE BEING DEBATABLE WAS OUTSIDE THE PURVIEW OF SE CTION 154 OF THE ACT. 11. MEANWHILE THE ASSESSEE ALSO MOVED AN APPLICATI ON FOR RECTIFICATION UNDER SECTION 154 OF THE ACT DATED 2.5.2009 IN WHIC H IT WAS ALLEGED THAT THE ORDER UNDER SECTION 154 OF THE ACT WAS SERVED O N 1.5.2009 AND UNDER WHICH IT IS CLEAR THAT INTIMATION UNDER SECTION 143 (1) OR NOTICE UNDER SECTION 154 OF THE ACT WAS NOT CONSIDERED NECESSARY AS NONE HAS BEEN SERVED UPON THE ASSESSEE. THE SECOND PLEA OF THE A SSESSEE WAS THAT THE ACKNOWLEDGEMENT OF THE RETURN OF INCOME AT PAGE NO. 1 HAD SHOWN NIL INCOME AND THE BROUGHT FORWARD LOSSES WERE DULY REF LECTED IN THE RESPECTIVE COLUMNS BUT THE LOSSES WERE NOT ADJUSTED IN MAT COLUMNS 6 AUTOMATICALLY. THE CLAIM OF THE ASSESSEE WAS THAT NO RECTIFICATION COULD BE MADE WITHOUT CONFRONTING THE ASSESSEE WITH THE S AME AND FURTHER THE FIGURES IN THE RETURN MAKE THE SAME DEBATABLE ISSUE WHICH IS OUTSIDE THE PURVIEW OF SECTION 154 OF THE ACT. 12. CONSEQUENT TO THE APPLICATION FILED BY THE ASSE SSEE THE ASSESSING OFFICER PASSED ANOTHER ORDER UNDER SECTION 154 OF T HE ACT DATED 23.6.2009 WHICH IS REPRODUCED BY THE CIT (APPEALS) IN BOTH ITS APPELLATE ORDERS. IN RESPECT OF THE FIRST ISSUE OF THE ASSESSEE OF NON- SERVICE OF INTIMATION UNDER SECTION 143(1) AND NOTI CE UNDER SECTION 154 OF THE ACT REDUCING THE DEMAND SO CREATED UNDER SEC TION 143(1) OF THE ACT THE ASSESSING OFFICER WAS OF THE VIEW THAT AS THE DEMAND WAS BEING REDUCED THERE WAS NO REQUIREMENT TO SERVE NOTICE U NDER SECTION 154 OF THE ACT. IN RESPECT OF THE OTHER ISSUE RAISED BY T HE ASSESSEE THE ASSESSING OFFICER ADMITTED THAT THE ACKNOWLEDGEMENT AT PAGE NO.1 HAD SHOWN NIL INCOME AND BROUGHT FORWARD LOSSES WERE RE FLECTED IN THE RESPECTIVE COLUMNS. HOWEVER IN RESPECT OF THIRD P OINT THE ASSESSING OFFICER STATED THE SAME WAS NOT CORRECT AS THE ASSE SSEE ITSELF HAD SHOWN IN THE MAT SCHEDULE IN E-RETURN FILED PROFIT BEFOR E TAX IN COLUMN NO.3 AT RS.12 91 896/- AND IN COLUMN NO.6 PROFIT UNDER S ECTION 115JB AT RS.12 91 896/- AND TAX PAYABLE UNDER SECTION 115JB AT RS.1 29 190/-. THE ASSESSING OFFICER FURTHER HELD THAT AS THE TAX UNDER MAT WAS DETERMINED ON THE BASIS OF THE RETURN FILED BY THE ASSESSEE THE SAME WAS PERMISSIBLE UNDER SECTION 154 OF THE ACT. THE CIT (APPEALS) IN BOTH THE APPELLATE ORDERS HAS RELIED UPON THE OBSERVATIONS O F THE ASSESSING OFFICER IN THE SECOND ORDER PASSED UNDER SECTION 15 4 OF THE ACT AND DISMISSED BOTH THE APPEALS OF THE ASSESSEE. 7 13. ANALYZING THE ENTIRETY OF THE FACTS AND CIRCUMS TANCES OF THE PRESENT CASE WE FIND THE ASSESSEE HAD FURNISHED RE TURN OF INCOME SHOWING NIL INCOME AND HAD CLAIMED CREDIT OF TDS OF RS.53 237/- AND FURTHER CLAIMED REFUND OF RS.53 240/-. IN THE ACKN OWLEDGEMENT FILED ALONGWITH THE RETURN OF INCOME THE ABOVE STAND IS C LEARLY THERE AND EVEN IN THE FIRST PAGE OF THE RETURN OF INCOME WHICH IS VERIFIED BY THE ASSESSEE THE GROSS TOTAL INCOME WAS SHOWN AT NIL A ND REFUND OF TAX WAS CLAIMED AT RS.53 240/-. THERE IS NO COLUMN IN THE SAID ACKNOWLEDGEMENT FILED WITH THE RETURN OF INCOME AND SO CALLED FIRST PAGE OF THE RETURN OF INCOME FOR DECLARATION OF BOOK PROFITS THOUGH THE ASSESSEE HAD ADMITTEDLY CLAIMED REFUND OF RS.53 240/-. THE ASSE SSING OFFICER WHILE PROCESSING THE RETURN OF INCOME VIDE NOTING DATED 2 9.10.2008 HAD CREATED DEMAND OF RS.10 86 670/-. THE PROVISIONS O F THE ACT IN RESPECT OF PROCESSING OF THE RETURN OF INCOME BY WAY OF SEC TION 143(1) OF THE ACT BEFORE ITS AMENDMENT CLEARLY STIPULATE THAT WHE RE ANY TAX OR INTEREST WAS FOUND DUE ON THE BASIS OF RETURN OF INCOME AFTE R ALLOWING ADJUSTMENT OF TAX PAID THEN AN INTIMATION SHALL BE SENT TO TH E ASSESSEE SPECIFYING THE SAME SO PAYABLE AND SUCH INTIMATION SHALL BE DE EMED TO BE A NOTICE OF DEMAND ISSUED UNDER SECTION 156 AND THE PROVISIO NS OF THE ACT SHALL APPLY ACCORDINGLY. WHERE ANY REFUND IS DUE ON THE BASIS OF SUCH RETURN THE SAME SHALL BE GRANTED TO THE ASSESSEE AND AN IN TIMATION TO THE EFFECT SHALL BE SENT TO THE ASSESSEE. IT IS FURTHER PROVI DED BY THE PROVISO UNDER SECTION 143(1) OF THE ACT THAT EXCEPT AS PROVIDED I N THIS SUB-SECTION THE ACKNOWLEDGEMENT OF THE RETURN SHALL BE DEEMED TO BE AN INTIMATION UNDER SUB-SECTION WHERE EITHER NO SUM IS PAYABLE BY THE A SSESSEE OR NO REFUND IS DUE TO HIM. IT IS FURTHER PROVIDED THAT NO INTI MATION UNDER SUB-SECTION SHALL BE SENT AFTER THE EXPIRY OF ONE YEAR FROM THE END OF THE FINANCIAL YEAR IN WHICH THE RETURN WAS MADE. 8 14. IN VIEW OF THE CLEAR-CUT PROVISIONS OF THE ACT WE ARE OF THE VIEW THAT WHERE ANY DEMAND IS CREATED WHETHER RIGHTLY OR WRONGLY AGAINST THE ASSESSEE THE REQUIREMENT OF THE SECTION IS SERVICE OF THE INTIMATION UPON THE ASSESSEE FOR IT TO AVAIL THE SUITABLE REMEDY A VAILABLE UNDER THE ACT. THE ASSESSEE AS IS APPARENT FROM THE RETURN OF INC OME FILED FOR THE YEAR UNDER CONSIDERATION HAD DECLARED NIL INCOME AND HA D CLAIMED REFUND OF RS.53 240/-. EVEN WHERE THE SAID REFUND OF THE ASS ESSEE WAS TO BE ALLOWED AS PER SECTION 143(1)(II)(PREAMENDED) OF T HE ACT THE INTIMATION FOR GRANT OF REFUND WAS TO BE SENT BY THE ASSESSING OFFICER TO THE ASSESSEE. THE WORDS USED IN THE PROVISION ARE SHALL AND THE SAME HAVE TO BE FOLLOWED BY THE AUTHORITIES. IN CASE ANY DEM AND IS CREATED AGAINST THE ASSESSEE THEN UNDER SECTION 143(1)(I)(PREAMENDE D) OF THE ACT THE PROVISION REQUIRES AN INTIMATION SHALL BE SENT TO T HE ASSESSEE SPECIFYING THE SUM SO PAYABLE. IN THE FACTS OF THE PRESENT CA SE BEFORE US WHERE ON PROCESSING THE RETURN OF INCOME ON 29.10.2008 DEMA ND OF RS.10 86 670/- WAS CREATED AGAINST THE ASSESSEE AS AGAINST CLAIM OF REFUND OF RS.53 237/- MADE BY THE ASSESSEE IN ITS R ETURN OF INCOME SUCH INTIMATION UNDER SECTION 143(1) OF THE ACT HAD TO B E COMPULSORILY SERVED UPON THE ASSESSEE. THE ASSESSING OFFICER HOWEVER IN THE PRESENT CASE HAD THEREAFTER PASSED ORDER UNDER SECTION 154 OF TH E ACT DATED 26.3.2009 WHEREIN IT CLAIMS THAT ON PERUSAL OF THE RETURN OF INCOME IT WAS FOUND THAT THE TOTAL INCOME OF THE ASSESSEE WAS NIL AFTER SETTING OFF OF THE BROUGHT FORWARD LOSSES AND RECTIFICATION WAS CARRIE D OUT UNDER WHICH THE ASSESSEE WAS CHARGED WITH TAX PAYABLE UNDER MAT. T HE SAID RECTIFICATION UNDER SECTION 154 OF THE ACT WAS CARR IED OUT BY THE ASSESSING OFFICER SUO MOTU ON 26.3.2009 WITHOUT ANY NOTICE TO THE ASSESSEE WHATSOEVER. WE FIND NO MERIT IN THE PROCE EDINGS CARRIED OUT BY THE ASSESSING OFFICER IN THIS REGARD. THE INTIMATI ON UNDER SECTION 143(1) OF THE ACT HAD NECESSARILY TO BE SERVED UPON THE ASSESSEE UNDER 9 WHICH DEMAND OF RS.10 86670/- WAS CREATED AGAINST T HE ASSESSEE. SECONDLY THE ASSESSEE HAD DECLARED NIL INCOME AND NIL TAX PAYABLE IN ITS RETURN OF INCOME BUT CLAIMED REFUND OF TDS AND IN CASE ANY RECTIFICATION UNDER SECTION 154 OF THE ACT HAD TO BE CARRIED OUT TO THE INCOME ASSESSED IN THE HANDS OF THE ASSESSEE THE S ERVICE OF NOTICE UNDER SECTION 154 OF THE ACT WAS COMPULSORY AND IN THE AB SENCE OF THE SAME WE FIND NO MERIT IN THE ORDER PASSED UNDER SECTION 154 OF THE ACT DATED 26.3.2009. 15. THE ASSESSEE HAD ALSO FILED RECTIFICATION APPLI CATION DATED 2.5.2009 IN WHICH IT HAD CLAIMED THAT THE BROUGHT FORWARD LO SSES WERE ADJUSTED IN THE MAT COLUMN AUTOMATICALLY AND FURTHER CLAIM OF T HE ASSESSEE WAS THAT THE NIL TAX WAS PAYABLE BY THE ASSESSEE. THE EXPLA NATION OF THE ASSESSEE IN THIS REGARD WAS THAT IT WAS THE FIRST YEAR OF FI LING E-RETURN OF INCOME AND THERE WERE CERTAIN ERRORS IN THE SAID RETURN OF INCOME WHICH WERE BEYOND THE CONTROL OF THE ASSESSEE. 16. WE FIND FROM THE PERUSAL OF RETURN OF INCOME FI LED FOR THE YEAR UNDER CONSIDERATION WHICH IS AVAILABLE ON THE ASSE SSMENT RECORDS OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION THAT AT PAGE 9 THE PARTICULARS OF COMPUTATION OF TOTAL INCOME ARE PROVIDED IN PART B-TI UNDER WHICH THE ASSESSEE HAD DECLARED INCOME FROM PROFITS AND G AINS FROM BUSINESS IN COLUMN NO.2 WHICH WAS ADJUSTED AGAINST BROUGHT FOR WARD LOSSES AS PER COLUMN NO.8 AND THE GROSS TOTAL INCOME AS PER COLUM N NO.9 IS NIL. UNDER COLUMN NO.15 THE DEEMED TOTAL INCOME UNDER S ECTION 115JB OF THE ACT WAS DECLARED AT RS.12 91 896/- AND THERE IS NO COLUMN FOR PROVIDING THE BROUGHT FORWARD LOSSES AGAINST THE SA ID BOOK PROFITS UNDER SECTION 115JB OF THE ACT. IN PART B-TTI AT PAGE 9 OF THE E-RETURN THE COMPUTATION OF TAX LIABILITY ON TOTAL INCOME IS PRO VIDED IN COLUMN NO.1 10 I.E. TAX PAYABLE ON DEEMED TOTAL INCOME UNDER SECTI ON 115JB OF THE ACT WAS DECLARED AT NIL. IN COLUMN B THE TAX ON NORMAL RATES OF INCOME WAS ALSO DECLARED AT NIL BY THE ASSESSEE. THE GROSS TA X LIABILITY IN COLUMN NO.10 WAS DECLARED AT NIL. THE ASSESSEE CLAIMED BENEFIT OF CREDIT OF TDS AT RS.53 237/- AND IN COLUMN NO.17 REFUN D WAS CLAIMED AT RS.53 240/-. THE ABOVE SAID FIGURES ARE AVAILABLE AT PAGES 9 AND 10 OF THE RETURN OF INCOME. HOWEVER AS AGAINST THIS TH E ASSESSEE AT PAGE 20 OF THE RETURN OF INCOME UNDER THE SCHEDULE MAT IN C OLUMN NO.6 DECLARED THE BOOK PROFITS UNDER SECTION 115JB AT RS .12 91 896/- WITH TAX PAYABLE UNDER SECTION 115JB OF THE ACT AT RS.1 29 1 90/-. IT NEEDS TO BE APPRECIATED THAT CERTAIN COMPUTATION I.E. TOTAL FIG URES AND COMPUTATION OF TAX PAYABLE OR THE INTEREST CHARGEABLE UNDER VARIOU S SECTIONS OF THE ACT ARE AUTOMATICALLY GENERATED. IT IS APPARENT FROM T HE PERUSAL OF THE FORMAT OF THE RETURN OF INCOME RELATING TO ASSESSME NT YEAR 2007-08 THAT THOUGH THERE IS PROVISION FOR DECLARATION OF BOOK P ROFITS UNDER SECTION 115JB OF THE ACT BUT THERE IS NO COLUMN FOR DECLAR ATION OF BROUGHT FORWARD LOSSES TO BE CLAIMED AGAINST SUCH BOOK PROF ITS AND DECLARED UNDER SECTION 115JB OF THE ACT. IN THE ENTIRETY OF THE FACTS AND CIRCUMSTANCES OF THE CASE WE FIND MERIT IN THE CLA IM OF ASSESSEE MADE BY WAY OF RECTIFICATION APPLICATION FILED ON 2.5.20 09. THE ASSESSING OFFICER HAD REJECTED THE SAID APPLICATION MADE BY T HE ASSESSEE VIDE ORDER PASSED UNDER SECTION 154 OF THE ACT DATED 23.6.2009 . IN THE INTEREST OF JUSTICE AND IN THE ENTIRETY OF THE FACTS AND CIRCUM STANCES WE DEEM IT FIT TO RESTORE THE ISSUE OF ADJUDICATION OF APPLICATION MOVED BY THE ASSESSEE UNDER SECTION 154 OF THE ACT VIS--VIS THE CLAIM OF SET OFF OF BROUGHT FORWARD LOSSES FOR COMPUTING BOOK PROFITS UNDER SEC TION 115JB OF THE ACT AND THE TAX THEREOF TO THE FILE OF THE ASSESSI NG OFFICER. THE ASSESSING OFFICER SHALL ADJUDICATE THE SAID RECTIFI CATION APPLICATION MOVED BY THE ASSESSEE IN ACCORDANCE WITH LAW AFTER AFFORDING REASONABLE 11 OPPORTUNITY OF HEARING. IN VIEW THEREOF APPEAL IN ITA NO.1063/CHD/2010 IS ALLOWED AND APPEAL IN ITA NO.44 0/CHD/2011 IS ALLOWED FOR STATISTICAL PURPOSES. 17. IN THE RESULT APPEAL IN ITA NO.1063/CHD/2010 I S ALLOWED AND APPEAL IN ITA NO.440/CHD/2011 IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 31 ST DAY OF JULY 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 31 ST JULY 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR ITAT CHANDIGARH