10 December 2014
An assesse filed return of income for AY 2012-13. Income as per section 115JB comes to Rs. 702884 & Net profit as per P/L Account comes to Rs.0. Therefore, Self Assessment Tax has been paid under MAT provisions@ 18.5% along with Cess which comes to Rs. 133935. Now, the case got selected for scrutiny under section 143(3)under CASS for heavy unsecured loan. Now the AO added Rs.847306 on several grounds and finally assessed income at Rs. 1550190. Now he computed tax @30% on Rs.1550190 i.e Rs. 479009. I want to know whether the AO contention is right on calculating tax @30% instead of 18.5% & also whether AO has the right to make addition on other grounds than the ground based for CASS. waiting for your reply.
10 December 2014
I request you to first register in this forum. Reg your query, I am not clear how the addition made is added to the book profit. Normally additions should be made only to Income as per IT act. Book profit can be altered only if the assessing officer finds grounds to recast the accounts in accordance with Schedule VI of the companies act. i.e. if schedule VI and othe provisions of the cos act have been violated in preparing accounts of the company. All other additions should be on income as per IT act only, which in your case is NIL. For a better understanding pl provide the nature of additions made. reg whether additions can be made on matters other than CASS criteria, it would depend on whether the CASS has given a scrutiny type as "complete scrutiny" or "Limited Scrutiny"
10 December 2014
I request you to first register in this forum. Reg your query, I am not clear how the addition made is added to the book profit. Normally additions should be made only to Income as per IT act. Book profit can be altered only if the assessing officer finds grounds to recast the accounts in accordance with Schedule VI of the companies act. i.e. if schedule VI and othe provisions of the cos act have been violated in preparing accounts of the company. All other additions should be on income as per IT act only, which in your case is NIL. For a better understanding pl provide the nature of additions made. reg whether additions can be made on matters other than CASS criteria, it would depend on whether the CASS has given a scrutiny type as "complete scrutiny" or "Limited Scrutiny"
CAclubindia
