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2012 (8) TMI 557 - AT - Income TaxBrought forward business loss - benefit denied applying provisions of S79 - change in shareholding - Held that:- Perusal of records shows that the shares of the Tata Industries Ltd. have been transferred to Tata Power Co. Ltd. Both the companies are companies in which public are substantially interested as both the company’s shares are traded in the stock market. Hence, facts of the case are covered by provisions of Sec. 2(18)(b)(B)(c) and therefore the claim of set off of brought forward losses are not hit by provisions of Sec. 79 Exclusion of depletion of Producing properties while computation of book profit u/s 115JB - Revenue contended that depletion of Producing properties cannot be treated as depreciation - Held that:- As per Guidance Note of the ICAI, depreciation also includes depletion of natural resources through the process of extraction or use. After considering the finding of the Tribunal and the guidance note issued by ICAI, we are of the considered view that the assessee is entitled to claim depletion alongwith depreciation for calculating the Book Profit u/s. 115JB Foreign exchange loss resulting in the enhancement of loan liability taken to acquire assets in earlier year - revenue or capital expenditure - Held that:- Since Tribunal in earlier year allowed the claim u/s 43A. Hence, the same is allowed. Foreign exchange loss allocated to development expenses - revenue or capital expenditure - Held that:- Starting of the commercial production is not the only condition as provided u/s 42(1)(b) but it is one of the conditions, as the assessee has satisfied that this condition has been fulfilled , we restore this matter back to the files of the AO with the direction to verify whether the assessee complies/fulfills other conditions as provided u/s. 42(1)(b)
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