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2020 (5) TMI 75 - AT - Income TaxRevision u/s 263 - adjustment of business loss or unabsorbed depreciation as per books of account, while computing book profit u/s.115JB - HELD THAT:- We find that this is only a factual verification to be made by the Ld.AO from the records of the earlier years and decide the availability of business loss or unabsorbed depreciation for the purpose of reduction while computing book profit U/s.115JB - AO is directed to do so in accordance with law. Hence, the direction of the Ld.CIT in this regard is hereby upheld with all issues left open for the assessee to present with necessary evidences before the Ld.AO. AO is directed to decide this entire issue in accordance with law. Accordingly grounds raised by the assessee in respect of this issue are dismissed. Taxability of dividend income and other income in the hands of the assessee under the head ‘profits and gains of business and profession’ or ‘income from other sources’ and consequently set-off of brought forward business losses from earlier years against such income - It is incumbent on the part of the assessee that having promoted industries in the State and having undertaken to participate in the day to day affairs in the management of those undertakings by participating in crucial decision making process. The assessee had to maintain its 24% equity stake in those undertakings at every point in time, so as not to lose controlling interest over the respective undertakings. With regard to yet another observation made by the Ld.CIT in his order that in Schedule VII of the Balance sheet, the assessee company had shown ‘investments other than subsidiaries’ and had shown market value of investments thereon. We find that this disclosure requirement is made in accordance with Schedule VI of the Companies Act, 1956, which has got absolutely no relevance for the purpose of Income Tax Act. The assessee was all along getting returns only in the form of dividend and had never participated in any profit sharing with those public sector undertakings right from the inception of the assessee company. Hence, the case laws relied upon by the Ld.AR which were passed by this Tribunal and by the Hon’ble Jurisdictional High Court in the assessee’s own case for the earlier years would rule the field even for the year under consideration before us. Accordingly, the observations of the Ld.CIT in Pages 6 to 8 of his order are dismissed and the grounds raised by the assessee in this regard are allowed. Appeal of the assessee is partly allowed.
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