9911796707
TMI Blog1996 (7) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1990-91, after rejection of the application presented under section 256(1) of the Act and registered as R. A. No. 268/Ind. of 1993 on July 26, 1994, for our opinion : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in reducing unabsorbed depreciation of Rs. 1,34,20,719 in place of unabsorbed business loss of Rs. 3,64,769 for determining the book profit of the year ? " The facts of the case, in brief, are that the non-applicant/assessee is a limited company. As per the profit and loss account, the assessee's profit amounted to Rs. 36,70,693. For the purpose of working out the income under section 115J of the Act, the Assessing Officer deducted business loss, set off of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss must necessarily, therefore, include the amount of depreciation and unabsorbed depreciation. It was held that in the case at hand after set off of unabsorbed depreciation as per profit and loss account, the book profit of the assessee is a negative figure and, therefore, there is no income under section 115J. Aggrieved by the order of the Tribunal, the Department submitted an application under section 256(1) of the Income-tax Act. The Tribunal declined to refer the case and rejected the application. Therefore, the applicant has filed this application under section 256(2) of the Act. We have heard Shri A. M. Mathur, learned senior counsel, with Shri Ashok Kumar Shrivastava, for the applicant/Department and Shri P. M. Choudhary, learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany engaged in the business of generation or distribution of electricity), the total income, as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 1988 (hereafter in this section referred to as the relevant previous year), is less than thirty per cent. of its book profit, the total income of such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to thirty per cent. of such book profit. (1A) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Parts II and III of Schedule VI to the Compani ..... X X X X Extracts X X X X X X X X Extracts X X X X
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