2014 (8) TMI 387 - HC - Income Tax

Admission of appeal – Issue not raised before any Assessment authority - Re-computation of book profits – Held that:- Assessee contended that the addition is not justified in the assessment order u/s 153A, as no incriminating material was found concerning the addition u/s 115 JB – the contention of the assessee cannot be accepted – as per section 153A, the additions need not be restricted or limited to the incriminating material, which was found during the course of search - There cannot be multiple assessments, once Section 153A of the Act is applicable - determination in the orders passed u/s 153A would be similar to the orders passed in any reassessment, where the total income determined in the original assessment order and the income that escaped assessment are clubbed together and assessed as the total income – the issue was not raised before the AO, CIT(A) or Tribunal – thus, the contentions of the assessee cannot be accepted – Decided against Assessee.

Denial of set off of book loss unabsorbed depreciation as per clause (iii) of Explanation 1 to section 115JB – Held that:- As per the clause (iii), the brought forward losses or unabsorbed depreciation, whichever is less, is to be set off - in the last AY 2003-04, book profit of ₹ 413 lakhs was set off from balance forward losses of ₹ 910 lakhs, giving a balance figure of ₹ 497 lakhs, which has been carried forward as unabsorbed loss - The applicable figure for this year would be ₹ 497 lakhs i.e. the available book loss and unexpired depreciation of ₹ 1079 lakhs – no substantial question of law arises for consideration – Decided against Assessee.