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2010 (1) TMI 665 - PATNA HIGH COURTAdvance tax - Book profit u/s 115JA - in view of the deeming provisions of section 115JA of the Act, the appellant's book profit as per the provisions of law contained therein were determined which led to the conclusion that it was nevertheless in losses, thereby meaning that it had deemed book-profit - Such determination of book profit may lead to the conclusion that the company had deemed book profit, then it is liable to payment of tax in which case it was liable to deposit advance tax as per the provisions of section 207 of the Act - Any insistence on deposit of advance tax in such a situation would tantamount to realisation of Income-tax on losses which militates against the concept of taxation and would be wholly impermissible in law advance tax has to be deposited while the financial year is in progress, whereas section 115JA of the Act comes into operation after the financial year closes and the balance-sheet is prepared - it would mean that the appellant chose not to deposit the advance tax at its own peril which was to abide the determination of book profit in terms of section 115JA of the Act - in the present case that the appellant had really incurred losses during the period in question, it was never liable to deposit advance Income-tax - Decided in favout of the assessee
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