Re: Additions made under normal provisions and under section 115JB of the Act
Dear Sir,
The assessee filed return of income declaring loss under both normal provisions and section 115JB of the Act.
The AO made additions under normal provisions. However, due to availability of b/f losses, the tax payable under normal provisions was Nil.
The AO also made additions to book profit and determined a book profit on which MAT is payable. Accordingly demand ha been raised.
The assessee filed appeal before CIT(A) for additions made under the normal provisions (Additions to book profits were not contested before the CIT(A)). The CIT(A) order was passed against the assessee.
The assessee filed appeal before the ITAT and the same is pending before the ITAT as on 31.01.2020. The assessee has also filed additional grounds before the ITAT in respect of the additions made to the book profit. The appeal is pending as on date.
The assessee wishes to file under VsV and c/f reduced losses under the normal provisions.
Queries:
1. Whether the assessee can file under the VsV scheme for the additional grounds raised before ITAT which have not been raised before CIT(A).
2. If yes, do the assessee need to file separate applications under VsV, one for normal provisions and other for book profit additions.
Request your valuable views on above.
Yes the assessee can file under VsV. In Jehangir H.C. Jehangir v ITO (2015) 229 Taxman 392 (Bom) (HC) held that issue specifically taken before the AO could not be refused to be considered by Tribunal merely because the CIT (A) did not have any view on it. Order of Tribunal was set aside. Accordingly, the Querist can avail the benefit of VSVA. In respect of all the issues pending before the Tribunal In All Cargo Global Logistics Ltd. v. Dy. CIT (2012) 16 ITR 38 (SB)(Mum.)(Trib.) the SB held that, a pure question of law arises for which facts are on record of the authorities below, the question should be allowed to be raised if it is necessary to assessee the correct tax liability. Revenue has challenged the order of Special Bench before the High Court on other grounds and not on the issue of admission of additional grounds. CIT v. All Cargo Global Logistics Ltd. (2015) 374 ITR 645 (Bom.)(HC)
Accordingly, the assessee can avail the benefit of the scheme in respect of entire appeal which is pending before the ITAT.
The assessee has to file one application only , however the tax in dispute in the appeal has to be settled .
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