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2014 (10) TMI 745 - HC - Income TaxComputation of MAT - Entitlement for unabsorbed depreciation - Unabsorbed business loss - Whether the Tribunal is right in holding that "loss" in explanation (iv) to section 115J means net loss after deduction of depreciation and that the assessee was entitled to deduction of unabsorbed depreciation – Held that:- Following the decision in Surana Steels (P) Ltd. vs. Deputy Commissioner of Income-Tax [1999 (4) TMI 5 - SUPREME Court] - a plain reading of Section 115J shows that if the assessee be a company and its total income determined under the Income-tax Act in respect of a previous year be less than thirty per cent of its book profit, fictionally it will be deemed that its total income chargeable to tax for the relevant previous year was an amount equal to thirty per cent of such book profit - The depreciation is provided for in the Profit and Loss Account - The loss is arrived at after taking into account the depreciation provided - the word loss as used in proviso clause (b) to Section 205 (1) signifies the amount arrived at after taking into account the amount of depreciation and it has to be so read and understood in the context of Section 115J of the Income-tax Act, 1961 - the term 'loss' as occurring in clause (b) of the proviso to Section 205 (1) of the Companies Act has to be understood and read as the amount arrived at after taking into account the depreciation and that If 'loss' were to be taken as pre-depreciation loss then the resultant computation will not be in conformity with the tenor of the provisions of Section 205 – the order of the Tribunal is upheld – Decided against revenue.
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