Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 1064 - ITAT CHENNAIRevision u/s 263 by CIT - AO allowed set off of brought forward business loss under section 115JC - HELD THAT:- AO has taken contrary interpretations of 'Total Income', whereas he has arrived at a 'NIL' total Income under the Normal Computation method after setting off of the brought forward losses with the net profits. However for AMT computation, the AO adopted a position that Total Income means net profits and he has computed the Alternate Minimum Tax (AMT) on net profits without setting off with the brought forward losses. Section 115JC stipulates that the Alternate Minimum Tax (AMT) would need to be computed only on the Total Income of the Appellant. Further section 2(45) defines Total Income is to be computed after giving effect to the provisions of the Act which includes section 72 of the Act which stipulates that brought forward losses is to be set off with the net profits. Section 139(1) stipulates that the assessee has to furnish the return of income in the prescribed form and verified in the prescribed manner after setting forth such other particulars as may be prescribed. In this regard the Appellant has furnished a copy of its return of income (ITR-4) filed wherein it is seen that in Part 8 - TI Computation of Total Income of the Income Tax Return Form, the Total Income is computed after setting off of the brought forward losses with the income. Further on a perusal of Schedule AMT in the Income Tax Return Form ITR-4, AMT is computed only on Total Income. Further Schedule AMT in ITR-4 mentions that the Total Income figure is to be adopted from item 13 of Part 8-TI of the Return i.e. Total Income figure computed after setting off of the brought forward losses with the net profits. Given the above, it is clear that AMT is to be computed on Total Income and that the Total Income is to be computed after setting off of the brought forward losses with the net profits. Hence the AO is directed to compute the Alternate Minimum Tax (AMT) on Total Income after setting off of the brought forward losses with the net profits as stipulated under section 115JC. CIT(A) has rightly decided the issue of computing total income after set off of brought forward losses with the net profit as stipulated under section 115JC of the Act and therefore, no interference is warranted. Accordingly, the ground raised by the Revenue is dismissed.
|