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2003 (2) TMI 5 - HC - Income TaxComputation of the book profit under section 115J. – adjusting the loss or the unabsorbed depreciation of earlier years – sale of capital asset - clause (b) of the first proviso to sub-section (1) of section 205 of the Companies Act - held that in this clause "loss" refers to the amount of loss arrived at after taking into account the amount of depreciation provided in the profit and loss account. Once it is found that the provisions of clause (b) of the proviso to sub-section (1) of section 205 of the Companies Act are applicable in section 115J and the object of such incorporation of the said provisions of the Companies Act in section 115J is to allow set off of the losses and unabsorbed depreciation. The Tribunal elaborately considered the said provisions and rightly found that the assessee is entitled for adjusting the loss or the unabsorbed depreciation of earlier years whichever is less in computation of the book profit under section 115J. It also considered the Board's circular. We agree with the reasoning and conclusions of the Tribunal
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