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2015 (6) TMI 317 - AT - Income TaxApplicability of clause (vii) to the Explanation 1 of S.115JB(2) - disallowance to reduce an amount of profit of sick industrial appellant company from the net profit to determine book profit u/s 115JB - Held that:- the profit of the sick industrial undertaking is to be reduced from the book profit, beginning with the year in which the Company becomes a sick industrial company and such exemption would be available till the year in which for the first time the net worth of the Company exceeds the accumulated losses. Accordingly, for the year under consideration i.e. Assessment Year 2007-08, the net profit of the sick industrial undertaking is to be reduced while computing the book profit. We direct the Assessing Officer to re-compute the book profit accordingly. See DCIT vs. Steelco Gujarat Limited [2010 (5) TMI 792 - ITAT AHMEDABAD] and ACIT vs. M/s. Praga Tools Ltd [2013 (12) TMI 1412 - ITAT HYDERABAD] - Decided in favour of assessee. Addition on Interest waived by the State Bank of Saurashtra and State Bank of Indore - Held that:- we set aside the orders of the authorities below with regard to addition of ₹ 77,81,667/- made by the Assessing Officer on the presumption that it was the interest waived by State Bank of Saurashtra. We direct the Assessing Officer to verify whether it is waiver of interest or its conversion of interest into loan. Conversion of interest into loan does not amount to waiver of interest because ultimately the interest is to be paid by the assessee. The only benefit assessee gets on conversion of interest into loan is more time for the payment. The Assessing Officer will re-adjudicate the issue in accordance with law, keeping in view our observation above. - Decided in favour of assessee for statistical purposes.
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