TMI Blog2011 (10) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... TANT MEMBER : This is an appeal filed by assessee for the assessment year 2006-2007 against the order dated 23.02.2011 of Commissioner of Income Tax -III, Coimbatore. 2. The only issue involved in the grounds of appeal of the assessee is that the ld. CIT(A) erred in holding that the company is liable of MAT u/s 115JB of the Income-tax Act, 1961 [in short, the Act] in the year in which it ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the revenue. According to the ld. CIT, during the Financial Year 2005- 06 relevant to Assessment Year 2006-07, the net wealth of the company became positive and no longer considered as a sick industrial company within the meaning of section 3(1)(o) of the SICA Act. Therefore, the company cannot be considered as sick industrial company and consequently the assessee was not eligible for exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard the rival submissions and perused the orders of the lower authorities and the material available on record. In the instant case, the undisputed facts of the case are that the assessee was a sick industrial company u/s 17(1) of the Sick Industrial Company [Special Provisions] Act, 1985 upto Assessment Year 2006- 07. During the Assessment Year under consideration, i.e., 2006-07, the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of profit of sick industrial company of the Assessment Year commencing on and from the Assessment Year relevant to the previous year in which said company has become sick industrial company under sub section (1) of section 17 of the Sick Industrial Companies [Special Provisions] Act, 1985 [1 of 1986] and ending with the Assessment Year during which the entire net worth of such company becomes e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, the ld. CIT was not justified in denying deduction to the assessee under clause (vii) to Explanation (1) of sub-section (2) of section 115JB of the Act for the year under consideration. We, therefore, set aside the order of the ld. CIT(A) and allow the appeal of the assessee. 10. In the result, the appeal of the assessee is allowed. Order pronounced in the court on 14th October, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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