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2014 (1) TMI 867 - AT - Income TaxTreatment of Unabsorbed depreciation u/s 115JB(2) of the Act – Held that:- The Assessing Officer has categorically stated in his assessment order that the assessee has already claimed un-absorbed depreciation in the earlier AY and the same was allowed - The AR has not been able to controvert the categoric finding of Assessing Officer or give any plausible reason as to why un-absorbed depreciation was carried forward year after year despite the fact that the assessee has been filing return of income under MAT provisions for the earlier AYs - If un-absorbed depreciation has already been allowed in the earlier AYs, the unabsorbed depreciation in the subsequent AYs would be NIL as no amount of depreciation for the AY 2000-01 to 2005-06 is added in the figure of unabsorbed depreciation being carried forward from AY. 1999-2000 onwards – thus, the amount which could have been deducted in accordance with the provisions of Clause (iii) of Explanation 1 to Section 115JB is un- absorbed depreciation or un-absorbed business loss which ever is less, the amount of depreciation being less i.e., NIL is deductible for arriving at book profits for the AY. 2005-06 - the treatment given by the AO to unabsorbed depreciation while determining book profits u/s 115JB for the AY. 2005-06 accepted – Decided against Assessee.
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