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2011 (8) TMI 516 - HC - Income TaxDepreciation - "Whether the Tribunal was right in holding that the depreciation of the previous years should be deducted for arriving at the book profits u/s 115J, even though such depreciation was not carried forward?" - The assessee showed NIL as regards the carry forward of loss and unabsorbed depreciation, rightly, the Commissioner of Income Tax revised the order of the officer to take the entire book profit of Rs.11,22,65,758/-, without any further adjustments for the purpose of working out 30% profit u/s 115J of the Income Tax Act, 1961 - Thus, even though the assessee contended that mere adjustment as against the general reserve by itself would not defeat the claim of the assessee for considering the unabsorbed declaration in computation of the profit for the next year in terms of Section 205(1) (b), yet, the fact remains that when the accounts were made up for the assessment year 1989-1990, the loss and unabsorbed depreciation remained NIL - On the factual position that the assessee had no unabsorbed loss or unabsorbed depreciation to be carried forward for any consideration in the year under consideration, rightly, the Commissioner of Income Tax gave the direction which is in accordance with the provisions of the Act, as well as the Income Tax Act, 1961 - the order of the Tribunal is set aside - The Tax case Revision is allowed.
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