TMI Blog2018 (5) TMI 1546X X X X Extracts X X X X X X X X Extracts X X X X ..... MAT computation - reduction of least of cash loss or depreciation loss as per books of accounts while computing the book profits u/s 115JB - Held that:- It is not in dispute that the least of cash loss or depreciation loss as per books of accounts is to be reduced while computing the book profits u/s 115JB - There is absolutely no logic in the ld. AO reducing ₹ 5,94,38,000/-taking figure of accumulated depreciation from the fixed assets schedule and reducing the same while completing the books profit u/s 115JB of the Act. The assessee has rightly deducted unabsorbed depreciation loss as per books of accounts. We hold that this figure requires factual verification by the AO. Hence remand this issue to the file of ld AO for factual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der both under normal provisions of the Act as well as under computation of book profits u/s 115JB of the Act. Before the Ld. CIT(A), the assessee pointed out that the ld. AO had erroneously made disallowance of ₹ 1,51,751/- in the assessment though as per the calculation the disallowance under third limb of Rule 8D(2) of the Rules works out only to ₹ 51,833/-. It was also pleaded that the assessee had earned dividend income from its group company namely Mcleod Russel India Ltd. and that the said dividend was credited in the bank account through ECS directly without incurring any expenditure thereon. The Ld. CIT(A) however did not agree to the contentions of the assessee and gave a finding that on verification of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in 144 ITD 141, we direct the ld. AO to make disallowance under third limb of Rule 8D(2) of the Rules by considering only dividend bearing investment subject to maximum of dividend income. Accordingly, ground nos. 1 2 raised by the assessee are partly allowed. 6. The next issue to be decided in this appeal is as to whether the reduction of least of cash loss or depreciation loss as per books of accounts while computing the book profits u/s 115JB of the Act has been properly made in the facts and circumstances of the case. 7. The brief facts of this issue is that the assessee reduced the sum of ₹ 6,31,53,460/- representing unabsorbed depreciation loss as per books of accounts and being the least when compared with cash loss as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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