PENTOKEY ORGANY ORGAN (INDIA) LIMITED,MUMBAI vs. DEPUTY COMM. OF INCOME TAX, CIRCLE 1(2)(1), MUMBAI

ITA 2651/MUM/2025Status: DisposedITAT Mumbai13 February 2026AY 2015-16Bench: SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER SHRI SANDEEP SINGH KARHAIL (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO had no jurisdiction to make additions based on the book profit computation under Section 115-JB after accepting the returned income and drawing no adverse inference for the original grounds of reopening. The AO's actions went beyond the scope of the reassessment proceedings initiated under Section 147.

What were the facts?

The assessee, engaged in manufacturing organic chemicals, filed a return declaring a loss. The initial assessment accepted the return. Reassessment proceedings were initiated under Section 147 due to large expenses claimed without substantiation. However, the Assessing Officer (AO) accepted the returned income and drew no adverse inference.

What were the issues?

Whether the AO had the jurisdiction to compute book profit under Section 115-JB and raise a demand when the reassessment proceedings were initiated for reasons that were not substantiated and the AO ultimately accepted the returned income.

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 148,Section 143(3),Section 144B,Section 115-JB,Section 234 A,Section 234 B,Section 234 C,Section 10

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Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SHRI VIKRAM SINGH YADAVSHRI SANDEEP SINGH KARHAILShri Om Kandalkar

For Appellant: Shri K. Gopal, Adv, Shri Om Kandalkar
For Respondent: Shri Virabhadra Mahajan, Sr. DR

PER SANDEEP SINGH KARHAIL, J.M. The assessee has filed the present appeal against the impugned order dated 20.02.2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [“learned CIT(A)”], for the assessment year 2015-16. 2. The solitary grievance of the assessee is against the reopening of the assessment under section 147 of the Act for the year under consideration. 2

3.

We have considered the submissions of both sides and perused the material available on record. The brief facts of the case are that

The order continues below.

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