TMI Blog1997 (10) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... t that there is no ambiguity in the interpretation of cl. (b) to proviso to s. 205(1) of the Companies Act in the application of sub-cl. (iv) of cl. (ba) to Explanation of s. 115J in assessee's case. 2. The appellant prays that the order of CIT(A) on the above ground be set aside and that of the ITO/AC be restored. The appellate craves leave to amend or alter any ground or add a new ground which may be necessary. The assessee filed a return and the assessment was completed under s. 143(1). The previous year for this year consisted of a period of 21 months ending on 31st March, 1989. After completion of the assessment, the AO noticed that the assessee was liable to pay tax on the book profits in terms of the provisions of s. 115J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,55,883 Amount of ₹ 1,55,883 which could not be set off this year is allowed to be carried forward. Issue D.N. and necessary challans. 3. Before the CIT(A), the learned counsel for the assessee contended that there was a carried forward loss of ₹ 5,26,056 as per the books for the year ended 30th June, 1988 (sic'1987) and this should be reduced from the profit for the period ended 30th June, 1988 of ₹ 5,17,503 and the profit of ₹ 2,108 for the period ended 31st March, 1989. There is no depreciation as per the books either for the part period ended 30th June, 1988, or the part period ended 31st March, 1989. However, in the absence of depreciation, the assessee claimed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould be given a deduction in the computation of the taxable income under s. 115J. It is pleaded that the question as to how the taxable income has to be computed under s. 115J when there is carried forward loss and no carried forward depreciation is a debatable issue and so, the order under s. 154 passed by the AO was beyond the powers vested in the officer under this section. 6. We agree with the contentions made out by the learned counsel for the assessee. We. however, make it clear his argument about the deduction for the amounts disallowed under s. 43B is without force. The provisions of s. 115J are a self-contained code and as held by the Hon'ble Andhra Pradesh High Court in the case cited by the learned Departmental Representa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividend in pursuance of a guarantee given by that Government: Provided that' (c).......... (b) If the company has incurred any loss in any previous financial year or years, which falls or fall after the commencement of the Companies (Amendment) Act, 1960, then, the amount of the loss or an amount which is equal to the amount provided for depreciation for that year or those years whichever is less, shall be set off against the profits of the company for the year for which dividend is proposed to be declared or paid or against the profits of the company for any previous financial year or years; arrived at in both cases after providing for depreciation in accordance with the provisions of sub-s. (2) or against both. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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