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2006 (7) TMI 656 - AAR - Income TaxWhether, in a case to which section 115JB applies, the applicant has the option to set off the current year’s profit against the loss brought forward or unabsorbed depreciation, in its accounts, in a manner different from the manner adopted for determination of “book profit” under section 115JB ? Whether the applicant has discretion to set off the current year’s profit, either against the loss brought forward or unabsorbed depreciation ? In the event of such set-off being made by the applicant in one year, can it in the subsequent years adopt a different method of set-off ? Can the applicant set off the current year’s profit partly against the business loss brought forward and partly against unabsorbed depreciation in such proportion as it might decide ? Whether the applicant having disclosed the aggregate loss comprising loss brought forward and unabsorbed depreciation as a consolidated figure in its profit and loss account, can for the purpose of calculating the book profit under section 115JB bifurcate such consolidated loss into loss brought forward and unabsorbed depreciation and avail of the benefit of reduction envisaged under sub-section (2) of section 115JB in a manner most beneficial to it ? Whether it is open to the applicant to set off the current year's profit against the loss brought forward or unabsorbed depreciation in a manner most beneficial to it subject, however, to the provisions of sub-section (2) and whether such adjustment can be changed from year to year ? Whether the applicant can change the method of setting off the current year's profit against loss brought forward or unabsorbed depreciation from year to year and whether that amounts to a change in the method of accounting and requires the approval of the assessing authority ? Which of the methods viz. the method adopted by the applicant for calculating the book profit for the assessment years 2004-05 and 2005-06 or the method adopted by the Revenue for the aforesaid assessment years is the correct method ?
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