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TMI Blog2014 (2) TMI 1379X X X X Extracts X X X X X X X X Extracts X X X X ..... th a direction to examine the applicability of the said decisions to the facts of the present case and decide the grounds. MAT Computation - provisions for diminution of the value of investment constitutes an allowable deduction for the purpose of computing the book profits or not? - HELD THAT:- As assessee says issue stands covered by the decision of the ITAT, Kolkata Bench in the case of DCIT vs. Mcleod Russel India Ltd [ 2013 (4) TMI 315 - ITAT KOLKATA] direct the CIT (A) to examine the said decision and decide the claim of the assessee. Appeal treated as allowed for statistical purposes. - I.T.A. No.6550/M/2010 - - - Dated:- 19-2-2014 - Shri D. Karunakara Rao, AM And Shri Sanjay Garg, JM Appellant by : Shri S.L. Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... term capital gain earned by the appellant during the year be adjusted against carried forward capital loss of earlier years and book profit be reduced by withdrawal of provisions for diminution in value of investment of earlier year. Additional Ground: 5. The AO as well as the CIT (A) erred in holding that capital gain earned by the assessee of ₹ 39,99,990/- on sale of plant machinery assessed u/s 50 is not long term capital gain and hence not eligible for set off against capital loss of AY 2001-2002. Even if capital loss of AY 2001-2002 is long term loss, same is eligible to set off against profit on sale of plant machinery. 3. At the outset, Shri S.L. Jain, Ld Counsel for the assessee submitted that there is a delay o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and ₹ 12.49 lakhs as book profits u/s 115JB of the Act. During the assessment, AO determined the total income under the normal provisions at ₹ 24,68,840/- and ₹ 34,24,459/- as book profits under section 115JB of the Act. AO made addition on account of short term capital gain‟ in the assessment. Matter travelled to the first appellate authority. 6. During the proceedings before the first appellate authority, after considering the submissions of the assessee, CIT (A) dismissed the appeal of the assessee. Eventually, the assessee‟s claim relating to set off of the carried forwarded capital loss of ₹ 9,01,233/- against the current year long term capital gain of ₹ 54,38,407/- was denied. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of DCIT vs. Mcleod Russel India Ltd (2013) 24 ITR 262 (Kolkata) and the relevant conclusion of the said decision reads as under: Conclusion:- Assessee was held entitled to deduction of provision for diminution in value of investment and provision for contingency written back in P L Account while computing book profit, when deduction was not allowed in computing the book profits of year in which provision were created. 9. On perusal of the said decision of the Tribunal, we direct the CIT (A) to examine the said decision and decide the claim of the assessee. Accordingly, ground nos.3 and 4 raised by the assessee are treated as allowed for statistical purposes. 10. In the result, appeal of the assessee is treated as al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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