MSTC LTD,KOLKATA vs. A.O,CIR-1(1),KOL, KOLKATA

Assessment Year: 2018-2019 MSTC Limited Delhi dated 06.03.2023 passed under section 250 of the Income Tax Act, 1961 for A.Y. 2018-19.

The assessee has challenged the order of ld. CIT(Appeals) on different grounds as contained in the Memorandum of Appeals. Though the grounds are argumentative running into 8 very detailed grounds, however, the common issue in these grounds is that the income of the assessee has been assessed at a loss of Rs.216,21,45,368/- as under section 115JB of the Act and thereafter the total loss of the assessee is computed at Rs.210,61,24,512/- under the normal provisions of the Act. However, in the computation sheet, the ld. Assessing Officer has computed the tax on an income of Rs.248,83,47,145/- by taking the same as income from business operation instead of loss which was duly assessed as per the assessment order as stated above and thereby denied the refund alongwith interest thereon as claimed by the assessee. The ld. A.R. vehemently submitted before the Bench that there was a complete non-application of mind by the ld. Assessing Officer while passing the order as the AO has taken the assessed loss as income and calculate the tax thereon which is a serious lapse on the part of the Assessing officer. The ld. A.R. pointed out that on one hand that loss of the assessee has been ascertained and assessed at Rs.216,21,45,368/- under section 115JB and Rs.210,61,24,512/-under

When the ld. CIT(DR), confronted about the gross negligence on the part of the ld. Assessing Officer, which also continued in the first appellate order. The ld CIT(DR) was also confronted with the fact that the assessee has moved rectification application before the ld. Assessing Officer as well as before the ld. CIT(Appeals) but could not get justice. The ld. A.R. prayed the Bench to pass a suitable direction to the ld. Assessing Officer to assess the correct loss and grant of refund of income tax along with interest thereon immediately.

We have heard the rival contentions and perused the relevant material placed before us. After perusal of the order of ld. Assessing Officer , we observe that there was a complete non-application of mind on the part of the AO and even the rectification moved by the assessee was not decided and disposed of. We note that Assessment Year: 2018-2019 MSTC Limited in the assessment order, the ld. Assessing Officer has computed and assessed loss under section 115JB of the Act as well as normal provisions of the Act, however, in the computation sheet, profit was taken at Rs.248,83,47,145/- and the tax was computed accordingly, which is totally factually incorrect and a case of gross negligence on the part of the ld. Assessing Officer. We note that the ld. 1st Appellate Authority has also not given justice to the assessee, though appreciated that this is the mistake committed by the ld. Assessing Officer in the assessment order thereby withholding the refund due lawfully to the assessee . Taking serious note of this gross negligence on the part of Assessing Officer, we deem it appropriate to restore the matter to the file of ld. Assessing Officer with a direction to dispose of the issue immediately within a period of two months and grant the refund of income tax along with interest to the assesese by correcting all the anomalies.