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2014 (6) TMI 536 - ITAT COCHINMinimum Alternate Tax (MAT) - book adjustments - Deduction of “lower of unabsorbed depreciation or brought forward business loss” while computing the book profit u/s 115JB of the Act – Held that:- The provisions of sec. 115JB do not prescribe any restriction on the number of years that are required to be considered for ascertaining the brought forward loss or unabsorbed depreciation – the AO is required to segregate the amount into “Brought forward loss” and “Unabsorbed depreciation” and adopt the lower of the two figures for the purpose of computing Book Profit u/s 115JB of the Act - the figure reported by the assessee needs to be verified at the end of the AO – thus the matter is to be remitted back to the AO for fresh adjudication with the direction to segregate the amount of Profit and Loss account into “brought forward loss” and “unabsorbed depreciation” and allow the lower of the two figures as deduction while computing the book profit u/s 115JB of the Act – Decided in favour of revenue. Deduction of Provision for interest and other charges – Held that:- the assessee has wrongly included the amount of Provision created for interest in the Book Profit in the earlier years, even when there is no such requirement u/s 115JA / 115JB of the Act - the amount so increased does not fall in the category of “amounts increased under Explanation 1 to sec. 115JB and under Explanation below the second proviso to sec. 115JA of the Act” - the assessee is not entitled to claim for deduction for the amount of Provision for interest reversed by it and credited to the Profit and Loss account – thus, the order of the CIT(A) is set aside – Decided partly in favour of Revenue.
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