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2018 (11) TMI 592 - AT - Income TaxMAT computation - adjustment of brought forward loss - whether the book profit figure adopted by the Ld.A.O for the purpose of application of provision of Section 115JB of the Act is correct? - Held that:- Book profit as mentioned in the Provision 115JB refers to the profit before taxes which is arrived at S.No. IX of the above referred statement of profit and loss account. The format of the Profit & Loss Account in the case of the assessee as placed on record before us deviates from the standardized format of statement of profit and loss as per Schedule-VI of 1956 at some places. In normal parlance such sundry balance written off which the assessee has itself accepted to be an income forming part of the head “Income” whereas in audited balance sheet the adjustment has been made from the amount available for appropriation. In such situation there needs proper verification at the end of the Assessing Officer who shall verify/ examine the audited balance sheet of the assessee vis-à-vis Part-II of Form of statement of Profit & Loss Schedule-VI of the Companies Act, 1956. He should also procure certificate from the auditor of the company that whether the adjustment of sundry balance written off is as per Schedule-VI of the Companies Act, 1956 and the book profit in the computation of income is as per Schedule-VI of the Companies Act, 1956. A.O should also get the audited balance sheet verified from the office of the Registrar of Companies under whose jurisdiction assessee company falls so as to get it confirmed that the audited balance sheet produced before the Tribunal is as per Schedule-VI of the Companies Act, 1956. In case a positive reply is received in favour of the assessee, A.O should decide accordingly as per law. Needless to mention that reasonable opportunity of being heard should be provided to the assessee. - Decided in favour of assessee for statistical purposes. Carry forward losses & unabsorbed depreciation - Held that:- In the return for the year under consideration the appellant company had set off brought forward losses and depreciation to the tune of ₹ 74,62,470/-. The set off of unabsorbed depreciation is regulated by provision of Section 32(2) of the Act subject to the provision of sub-section 72(2) of Section 73(3). It is also evident from the perusal of assessment record that AO has not given any specific finding for denying the set off of unabsorbed loss and unabsorbed depreciation. We, therefore set aside the issues raised by revenue to the file of A.O for afresh adjudication in the light of provision of law as applicable in the instant issue i.e. Section 32(2) read with respect to 72(2).
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