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2016 (10) TMI 540 - AT - Income TaxMAT applicability - book profit - computation of tax liability under section MAT - deduction for unabsorbed depreciation of earlier years while computing the book profit for the Assessment Year 2008-09 disallowed - Held that:- We find that the Assessing Officer in the assessment order has observed that profit as per profit & loss account was ₹ 1,59,28,201/-. According to the Assessing Officer as per his letter dated 28/07/2016, as per provision of clause (iii) of Explanation-1 to section 115JB, no business loss or unabsorbed depreciation is to be reduced from net profit to arrive at book profit for Assessment Years other than 2003-04, which already been adjusted at ₹ 71,12,338/-. Therefore, he reduced ₹71,12,338/- from ₹ 1,5928,201/- and arrived at book profit of ₹88,15,863/-. Thereafter, the Assessing Officer stated that from Assessment Year 2004-05 to 2008-09, Explanation (b) to clause (iii) comes into picture and according to which the loss shall not include depreciation and that the provisions of this clause shall not apply if either the amount of loss brought forward or unabsorbed depreciation is NIL. Therefore, he did not allow any deduction for unabsorbed depreciation of earlier years while computing the book profit for the Assessment Year 2008-09. From the reading of the explanations before amendment and after amendment goes to show that if either the loss brought forward or unabsorbed depreciation is nil, then the assessee is not allowable any deduction under this clause for computing the book profit under section 115JB. Hence, we find no infirmity in the orders of the lower authorities. Accordingly the order of the Commissioner of Income Tax (Appeals) is confirmed and the ground of appeal of the assessee is dismissed.
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