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TMI Blog2001 (9) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1991-92?" The assessment for the assessment year 1989-90 was made by invoking the provisions of section 115J and the assessee's total income in accordance with that section was determined at Rs.9,74,816. For the assessment year 1990-91 the income was also similarly determined at Rs.6,73,920 under the same provision. The provisions of section 115J were omitted with effect from April 1, 1991, i.e., from the assessment year 1991-92, i.e., the relevant assessment year in the case in hand. In the year under appeal while computing the assessment under section 143(3) the assessee claimed that an amount of Rs.15,78,210 was available to it as unabsorbed investment allowance and unabsorbed business loss/depreciation for bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is a non-obstante clause in sub-section (1) of section 115J the income shall be determined as per sub-section (1) of section 115J. Sub-section (1) of section 115J provides a fiction for taking the deemed income. That provides that though as per the provisions of the Act in computing the income, income may come at nil. But in such cases, in case of companies referred to in sub-section (1) while computing the income of the previous year, after the first day of April, 1988, and before the first day of April, 1991, if the income computed as per the provisions of the Act is less than 30 per cent. of the book profit, in such cases 30 per cent. of the book profit shall be taken as deemed income for the purpose of the income-tax. Sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the income of subsequent year or years. In our considered opinion, there is no substance in the argument of Mr. Dutt that the provisions of sub-section (2) are contrary and do not prevail over sub-section (1) of section 115J. Under the scheme of section 115J, it left no doubt or ambiguity under the scheme behind section 115J whatever the loss the assessee suffered on account of fixation of the deemed income, the assessee is permitted to carry forward that loss and that loss can be set off against the income of subsequent year or years. In view of the aforesaid provisions, we find no infirmity in the order of the Tribunal. In the result, we answer the question in the affirmative, i.e., in favour of the assessee and against the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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