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2011 (7) TMI 1235 - AT - Income TaxRevision u/s 263 - MAT - Computation of Book Profit u/s 115JB - CIT held that there are no brought forward business losses/depreciation of earlier years, which could have been adjusted while computing the book profits of the current year - For the loss incurred during the immediate preceding year, the assessee adjusted the figure of accumulated loss with the paid up capital and balance in profit and loss account was not reflecting any loss. - HELD THAT:- As per audited books of accounts, it is observed that the assessee has continuously suffered loss as per its books for the last four years and out of which in the first year the entire loss was on account of depreciation, and in the remaining three years, there was also loss more than depreciation, i.e., cash loss. In spite of the above, to say that there was no brought forward loss or unabsorbed depreciation as per books in the current year is, in our considered opinion, an absurdity. In the instant case, it is observed that the assessee has suffered loss continuously in the last four years. No material has been brought on record that such loss was set off against any profit of the subsequent year in determining the book profit of the assessee company after the year in which such loss was suffered. Thus, in our considered opinion, such loss was available for set off during the year under consideration for determining the book profit as per provisions of clause (iii) of section 115JB(2). In view of the above, in our considered opinion, there was no error in the order of the assessment as passed by the Assessing Officer. Our above view also finds support from the decision of the Hon'ble Delhi High Court in the case of CIT VERSUS SUMI MOTHERSON INNOVATIVE ENGINEERING LTD. [2010 (10) TMI 33 - DELHI HIGH COURT].
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