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2018 (7) TMI 1724 - AT - Income TaxRevision u/s 263 - limiting the claim of the assessee for reduction in book profit as computed under section 115JB by the amount of loss brought forward or unabsorbed depreciation whichever is less, as per books of account to ₹ 18,43,991/- as against the claim of the assessee for ₹ 55,01,780/- - rectification of mistake u/s 154 - Held that:- Without going into arithmetical accuracy of working of carry forward of set off losses etc., we are of the clear view that the methodology adopted by the assessee to prioritise set off of unabsorbed loss regardless of unabsorbed depreciation being lower is not in tune with the aim and object of Clause (iii) to Explanation 1 of Section 115JB of the Act. The decision rendered in the case of Eli Lilly [2011 (3) TMI 267 - DELHI HIGH COURT] relied upon by assessee does not provide answer to the controversy in issue. The Hon’ble Delhi High Court merely found that mistake, if any, is not in the nature of apparently mistake and thus not susceptible to rectification under s.154 of the Act. The issue raised by the assessee is therefore decided in negative on principle. Assessee has simultaneously pointed out certain factual errors such as quantum of carry forward loss of ₹ 3,00,78,787/- as on 01.04.2010 as per the method adopted by the AO as against the loss at ₹ 2,12,22,430/- as per the books of accounts of the assessee. We do not propose to go into arithmetical accuracy of quantum of carry forward and restrict ourselves to adjudicate the issue on the first principles. The factual aspects are thus remanded back to the file of the AO for determination of quantification of set off as per the aforesaid principle after giving proper opportunity to the assessee in this regard. Therefore, the issue is remanded back to the file of the AO for limited purposes of applying the principles narrated above and for re-determination of quantum of unabsorbed loss/depreciation available for set off in current year and succeeding year. - Decided against assessee
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