TMI Blog2014 (8) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... any reassessment, where the total income determined in the original assessment order and the income that escaped assessment are clubbed together and assessed as the total income – the issue was not raised before the AO, CIT(A) or Tribunal – thus, the contentions of the assessee cannot be accepted – Decided against Assessee. Denial of set off of book loss unabsorbed depreciation as per clause (iii) of Explanation 1 to section 115JB – Held that:- As per the clause (iii), the brought forward losses or unabsorbed depreciation, whichever is less, is to be set off - in the last AY 2003-04, book profit of ₹ 413 lakhs was set off from balance forward losses of ₹ 910 lakhs, giving a balance figure of ₹ 497 lakhs, which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 115JB of the Act? iii. Whether the Tribunal misconstrued the provisions of section 115JB of the Act particularly clause (iii) of Explanation 1 thereof, while upholding denial of set off of book loss/ unabsorbed depreciation relatable to earlier assessment years? iv. Whether on the facts and in the circumstances of the case, the findings arrived at by the Tribunal are perverse and contrary to record? v. Whether on the facts and in the circumstances of the case, the conclusion arrived at the Tribunal is such that no reasonable person correctly informed of the provisions of law would come to such a conclusion? 2. On the first question, we note that the Assessing Officer, in the proceedings under Section 153A of the Act, had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 51 and 153 of the Act. 3. Learned counsel for the appellant-assessee has relied on the decision of this Court in CIT Vs. Chetan Dass Lachman Dass, (2012) 254 CTR (Del) 392. The said decision notices insertion of Section 153A by Finance Act, 2003, its purpose and object, and the earlier proceedings for block assessment under Chapter XIVB, the difficulties and the legal issues which had arisen on the difference between regular assessment and block assessment. It is in this context that in the case of Chetan Dass Lachman Dass (supra), the Division Bench, [to which one of us (Sanjiv Khanna, J) was a party], has observed that Section 153A(1)(b) provides for assessment or re-assessment of the total income of six assessment years immediately pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in addition to the normal assessment, as was clarified by explanation below Section 158BA(2). However, with the introduction of Section 153A to 153C, the block assessment order procedure was given go by and the dual procedure and the technicalities removed, with simplified procedure under Section 153A. Under Section 153A the Assessing Officer, exercises normal assessment powers. It was in this context, it was observed thus: A question may arise as to how this is sought to be achieved where an assessment order had already been passed in respect of all or any of those six assessment years, either under Section 143(1)(a) or Section 143(3) of the Act. If such an order is already in existence, having obviously been passed prior to the initia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment, where the total income determined in the original assessment order and the income that escaped assessment are clubbed together and assessed as the total income. In such a case, to reiterate, there is no question of any abatement of the earlier proceedings for the simple reason that no proceedings for assessment or reassessment were pending since they had already culminated in assessment or reassessment orders when the search was initiated or the requisition was made. 4. The first question, we notice was not raised by the appellant before the Assessing Officer, CIT (Appeals) and before the Tribunal. The appellant claims that the contention being legal can be raised at any stage. We have examined Section 153A of the Act and find ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... As assessed by the assessing officer in the subject assessment year. 6. In the present appeal, we are concerned with the period ending 31st March, 2014 i.e. the Assessment Year 2004-05. In the last Assessment Year i.e. Assessment Year 2003-04 ending 31st March, 2003, the appellant-assessee had earned net book profit of ₹ 413 lakhs after setting off the said years depreciation of ₹ 574 lakhs. For the purpose of Section 115JB, the assessee was allowed to set off the book profit of ₹ 413 lakhs from the carry forward book losses of ₹ 910 lakhs. In other words, the book loss was calculated and computed at ₹ 497 lakhs. This was in consonance with clause (iii) of Explanation 1 to Section 115JB of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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