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TMI Blog2019 (2) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... ars being permissible as a deduction under Explanation 1(i) to Section 115JB(2)- HELD THAT:- As noticed that the assessee's specific claim was that though the interest was shown as a provision in the earlier years, the same was disallowed under Section 43B. It is also contended that in computation of the MAT under Section 115JB, this amount was added back as an unascertained liability in the earlier years. The assessee had been communicating with the Bank as to a One Time Settlement [OTS] during the said period. Eventually in the previous year relevant to the subject year, 2006-07, the matter was settled with the Bank. The entire interest was waived by the Bank and also a portion of the principal. The interest so debited to the profit and l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal ] for the assessment year 2006-07. 2. The first question is with respect to the unabsorbed depreciation/business loss; the lower of which was to be granted deduction while computing tax under Section 115JB of the Income Tax Act, 1961 [for brevity the Act ]. Whether the figures are to be taken as per the books of accounts or as permissible under the Income Tax Rules; is the question raised. The Tribunal found that there is no restriction as provided under 115JB and that it has to be from the books of accounts. The issue was remanded to the Assessing Officer [for brevity AO ] for consideration. The assessee has raised a question on this in the present appeal only because the remand report of the AO had specifically indicated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed liability and ought not to have been disallowed in the earlier years. When the AO as per the remand report at Annexure-C specifically states that it is disallowed under Section 43B, it was not proper for the Tribunal to have taken such a view. The learned Standing Counsel, Government of India (Taxes) also argues that as of now it is not clear as to whether the same was added back under Section 115JB. In such circumstances, the earlier issue having been remanded, it is only proper that the AO considers this issue also looking at the facts. However, we make it clear that the question of law raised as to whether the same was unascertained liability or ascertained liability is answered in favour of the assessee; if the same has been disallow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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