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TMI Blog2018 (10) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... on to section 115JB are clear and ambiguous and it is not possible to take two views as to the meaning of the statutory language. Hence, the request to read down the provision also does not merit acceptance. Consequently, the question of directing the respondents to allow reduction of the brought forward losses of the petitioner company from the net profit in order to compute book profits under section 115JB of the Act in absence of any unabsorbed depreciation in the assessment year under consideration, also cannot be accepted - Decided in favour of revenue - I.T.A. No. 1613/Ahd/2014 - - - Dated:- 1-8-2018 - Shri Waseem Ahmed, Accountant Member And Smt Madhumita Roy, Judicial Member For the Appellant : Shri Piyush Chawla, A.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Profit Loss Account merely represented the recoupment of the exploration cost incurred by the appellant on GS-OSN-2003/1 Block till 23rd March 2007 and thus could not result into am real profit to appellant taxable under section 115JB of the Act. 3. That on the facts and in the circumstances of the case, the Ld. CIT(A) grossly erred in confirming that the appellant was not eligible to claim brought forward losses of the earlier year from the current year income by virtue of sub-clause (iii) of Explanation 1 to section 115JB of the Act since the company has NIL 'unabsorbed depreciation. That the above grounds of appeal are without prejudice to each other. 3. At the outset, ld. Counsel for the assessee fairly conced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Gujarat High court vide its order dated 21/10/2010 has discussed the facts of appellant's case at para 2 of the order. The Hon'ble High Court in said order has categorically considering all the pleas of appellant and dismissed the petition filed by appellant and held as under: [7.18,] In the case of the petitioner company, the petitioner itself had debited the expenditure incurred by it to the profit and loss account and thereafter, had assigned its participating interest in the UJV to M/s Cairn India Ltd. before it actually started making any profit in relation to the business and as such, was not in a position to set off its losses against the income earned by it. In the year under consideration, it is an admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was submitted that since the plain and literal interpretation produces an absurd and unjust result inasmuch as the petitioner who has no income is required to pay tax, the provision is required to be read down by the Court. [7.20] Insofar the prayer that the provisions may be read down is concerned, it is well settled that the Doctrine of Reading Down is an internal aid to construe the words or: phrase in a statute to give it a reasonable meaning. The .object of reading down is to keep the operation of the statute within the purpose of the Act and constitutionally valid. Thus, in order to save a statute or a part thereof from being struck down it can be suitably read down. However, reading down is not permissible in such a manner as woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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