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2021 (2) TMI 665 - AT - Income TaxMAT Computation u/s 115JB - denying the adjustment in book profit by not giving deduction towards unabsorbed depreciation on the ground that the same has already been adjusted in the preceding years - HELD THAT:- We find that provisions of Sections 32(2) and 72 of the Act explicitly provide that the amount would be carried forward for set off in the succeeding years and it should be arrived at after deducting the amounts to which effect has already been given. We find that such provisions are apparently not present in computing the book profits u/s.115JB. We also find that most crucial expression used in the said Clause (iii) of Explanation 1 to Section 115JB of the Act would be “as per books of accounts”. Hence, unless the entire loss as per books of accounts gets wiped out by profits earned in subsequent years, the said loss would continue to remain in the balance sheet of the assessee i.e. “books of accounts” and would be eligible for reduction in accordance with Clause (iii) of Explanation 1 to Section 115JB of the Act, while computing book profits u/s.115JB of the Act. We find that this issue is no longer res-integra in view of the decision of DCIT vs. Binani Industries [2016 (3) TMI 873 - ITAT KOLKATA] Thus we direct the ld. AO to grant reduction of unabsorbed depreciation and re-compute the book profits u/s.115JB of the Act thereon. Grant of short credit of TDS - HELD THAT:- We direct the ld. AO to verify the TDS certificates or any other supporting evidences thereon and accordingly, grant the TDS credit eligible to the assessee in accordance with law.
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