9911796707
TMI Blog2008 (1) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... held that as there was no business loss or the loss was less than brought forward unabsorbed depreciation, the brought forwarded depreciation was not to be taken into account while working out the book profits for the purposes of Section 115 J of the Income-tax Act., 1961 ? (b) he directed the AO to determine the book profit at Rs.19,09,097/- for the purpose of Section 115 J as against the book profit determined by the assessee at a negative figure of Rs.1,64,54,112/- ?" 2. Briefly the facts are that for the assessment year 1988-89, on perusal of the assessment record, the Commissioner of Income Tax found that the assessee Company had worked out book profits at Rs.19,09,097/-. It was also observed that the Assessing Officer had adju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the asstt. Years 1985-86 to 1987-88 showed that the assessee had not suffered any actual loss in those years except the notional loss after deduction of depreciation. He also observed that the brought forward loss was, in fact, nil against substantial brought forward deprecation both as per straight line method and WDV method. He, therefore, held that as there was no business loss or the loss was less than brought forward unabsorbed depreciation, the brought forward depreciation was not to be taken into account while working out the book profit for the purpose of section 115-J of the I.T. Act, 1961. In the process he also referred to the provisions of section 205 (b) of the Companies Act, 1956 and observed that the Companies Act different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erved that the lower of the two were obviously figures of net losses and since two views were possible, the one favouring the assessee had to be preferred. It also observed that the case of the assessee was supported by the judgment of the Tribunal reported in 39 ITD 432. The Tribunal, therefore, directed the AO to deduct the amount of depreciation and on the resultant figure compute 30% of the profits u/s.115-J of the I.T. Act for the asstt. Year 1989-90. 4. The learned counsel submitted that the Tribunal has accepted the claim of the assessee in relation to asstt. Year 1989-90. He further submitted that though a reference has been made to the Hon'ble High Court of Punjab and Haryana, the Tribunal should take a consistent view for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 in ITA No.3046/Del/91 referred the modified question as referred in para 1 of the judgment to this Court for its opinion. 6. At the time of hearing, the learned counsel for the assessee submitted that the question of law referred to this Court is squarely covered in favour of the assessee by a decision of the Hon'ble Supreme Court in Surana Steels Pvt. Limited vs. Deputy Commissioner of Income Tax and others 237 ITR 777. Learned counsel also brought to the notice of this Court the judgement dated 11.1.2008 passed by this Court in ITR No.125 of 1992 (arising out of appeal No. ITA No.2170 (Del) 91 for the assessment year 1989-90) wherein the similar question of law for the assessment year 1989-90 between the parties has alre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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