2014 (5) TMI 186 - AT - Income Tax

Computation of book profit u/s 115JB of the Act Held that - Assessee showed bifurcation of brought forward losses and unabsorbed depreciation set off of losses and balance of depreciation/loss after setting off of profit for various years - the working of amount that can be set off for the purpose of Section 115JB was also showed - the break-up of depreciation and losses to be carry forward was also submitted the statement submitted by Assessee needs to be examined from the records of assessment thus, the matte is remitted back to the AO for fresh verification Decided in favour of Assessee.

Summary

Issues involved:
- Computation of book profit under section 115JB of the Income Tax Act for Assessment Year 2006-07.

Detailed Analysis:

Issue 1: Computation of book profit under section 115JB
- The appeal was filed against the order of CIT(A) for the Assessment Year 2006-07 regarding the assessment of book profits under section 115JB of the Act.
- The Assessee, a company engaged in manufacturing and selling products, declared a total loss for the year. The assessment was done under section 143(3) read with 147, and the book profit was assessed at a certain amount.
- The main contention was the computation of book profit under section 115JB. The Assessee argued that the book profit should be nil after setting off unabsorbed depreciation, while the Assessing Officer recalculated the profit based on previous year's adjustments.
- The CIT(A) partly allowed the appeal, but the Assessee was still aggrieved and appealed further.
- The Assessee presented details of carry forward positions and argued for a specific amount to be set off based on the available figures from previous years.
- The Tribunal remitted the issue back to the Assessing Officer for examination and verification of the Assessee's submissions, directing cooperation from the Assessee in providing necessary details.
- The Tribunal allowed the Assessee's appeal for statistical purposes, indicating that the issue needed further examination by the Assessing Officer.

This detailed analysis provides a comprehensive overview of the legal judgment, focusing on the computation of book profit under section 115JB of the Income Tax Act for the relevant assessment year. It highlights the arguments presented by the Assessee, the Assessing Officer's recalculations, the CIT(A)'s decision, and the Tribunal's final ruling to remit the issue for further examination.