TMI Blog2017 (8) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of section 115JB of the Act. Thus, law on this issue is fairly clear that the effect has to given for the brought forward loss or unabsorbed depreciation as per the books and as per the provisions of section 115JB of the Act. Respectfully following the order of this co-ordinate Bench in the case of Binani Industries Ltd. (2016 (3) TMI 873 - ITAT KOLKATA) we reverse the order of Ld. CIT(A) in this regard and direct the AO to delete the addition - Decided in favour of assessee. - ITA No. 2528/Kol /2013 - - - Dated:- 2-6-2017 - Shri N. V. Vasudevan, Judicial Member And Shri Waseem Ahmed, Accountant Member By Appellant : Shri Sanjay Bhattacharya, Advocate By Respondent : Shri Gouten Hanshing, CIT-DR ORDER Per Was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of the total unabsorbed depreciation of ₹ 144.62 crores being lower of unabsorbed depreciation. Therefore, the AO in the year under consideration while determining the book profit u/s. 115JB of the Act was of the view that unabsorbed depreciation available is of ₹ 37.15 crores only (144.62 107.47). However, assessee has claimed deduction of ₹ 144.62 crores while determining the book profit in the current year u/s. 115JB of the Act. Therefore, the AO was of the view that assessee has claimed excess deduction of unabsorbed depreciation by ₹ 106.91 crores and accordingly disallowed the same while determining the book profit u/s. 115JB of the Act. 5. Aggrieved, assessee preferred an appeal before Ld. CIT(A). The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CIT vs. Carbon Chemicals India Ltd 196 taxman 302(Ker.) and by ITAT, Chennai in the case of Laxmi Machine Works vs ACIT 1 ITR (Trib.) 92, as well as the illustration given in Circular no. 495 dated 22.9.1987, figures of book loss and unabsorbed book depreciation in the same have to be taken as the starting point for the computation for the year under appeal. I, therefore, do not find any fault in the working made by the assessing officer. The adjustment made to the book profit is, accordingly, confirmed. Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us on the following grounds:- 2. That the Commissioner of Income-tax (Appeals) was wrong in confirming the Assessing Officer s action while co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. Therefore the AO was of the view that the balance amount of unabsorbed depreciation of ₹ 37.15 crores (144.06-107.47) should be available for the adjustment while determining the book profit under section 115JB of the Act. The view of the AO was also confirmed by the ld. CIT(A). Now the issue before us arises for adjudication so to whether the action of lower authorities is correct in the aforesaid facts circumstances. In this connection, we find that neither the brought forward loss nor the unabsorbed depreciation has been written off in the books of the accounts. Both are appearing in the books of accounts in-spite of the facts that the unabsorbed depreciation was adjusted in the immediate preceding year to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, every year the situation of least of cash loss and depreciation loss needs to be worked out and reviewed and accordingly the understanding of the Learned AO that such loss once adjusted in earlier year is no longer available for set off is misconceived. Hence we do not find any infirmity in the order of the Learned CIT(A) in this regard. The Ground No.2 raised by the revenue is dismissed. Respectfully following the order of this co-ordinate Bench in the case of Binani Industries Ltd. (supra) we reverse the order of Ld. CIT(A) in this regard and direct the AO to delete the addition. Hence, this ground of assessee s appeal is allowed. 8. In the result, assessee s appeal stands partly allowed. Order pronounced in the open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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