TMI Blog2014 (6) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAT:- The previous year involved in the case is 31.3.1998 and the assessment year is from 1.4.1998 to 31.3.1999. In order to over come such claim, by Finance Act No.2/2009 which came into effect from 1.4.1998 clause (g) was substituted to explanation to Section 115JA of the Act. This Court had an occasion to consider the said question in the case of THE COMMISSIONER OF INCOME TAX vs WEIZMANN HOMES LTD. [ 2013 (5) TMI 123 - KARNATAKA HIGH COURT] wherein as held said amount has not been included in the book profit. It was unascertained liability. Even this amount is earmarked as provision for diminution in the value of any asset for the purpose of arriving at the book profit for the purpose of Section 115JA which ought to have been inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns are exempt from tax. By these self cancelling transactions, the assessee gets the benefit of depreciation without having any tax liability in any of the years. These transactions are noticed for earlier years also. The CIT (Appeals) and ITAT have upheld the depreciation claimed in respect of these types of transactions in ITA Nos.947 949/Bang/97 dated 31.5.2000 in the case of M/s ICDS Ltd. Following the same, the claim of the assessee in respect of the said transaction for the assessment year was disallowed. This Court also upheld the said order in M/s ICDS Limited s case. Accordingly, by the said order M/s ICDS Limited preferredan appeal to the Apex Court. The Apex Court in the case of M/s ICDS Limited vs Commissioner of Income Tax re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... previous year involved in the case is 31.3.1998 and the assessment year is from 1.4.1998 to 31.3.1999. In order to over come such claim, by Finance Act No.2/2009 which came into effect from 1.4.1998 clause (g) was substituted to explanation to Section 115JA of the Act. This Court had an occasion to consider the said question in the case of THE COMMISSIONER OF INCOME TAX vs WEIZMANN HOMES LTD. Reported in (2013) 84 CCH 201 KarHC wherein, it has been held as under: 11. This provision applies to only companies. If the total income of the company has computed under the provisions of this Act is less than 30 percent of book profit, the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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