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TMI Blog2021 (6) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... letely set off (ie both the losses viz unabsorbed business and unabsorbed depreciation losses were set off) , from the book profits of the remaining assessment years till the previous assessment year 2013-14 and the book profit as per the profit and Loss account balance as on 01.04.2013 per the balance sheet in the books of account - Thus, on the above facts, in effect there remains no brought forward business loss / unabsorbed depreciation loss available as per books for setting off against the book profit of this assessment year. See M/S. GO AIRLINES (INDIA) LIMITED [ 2021 (2) TMI 665 - ITAT MUMAI] - Revenue s appeal is allowed. - I.T.A. No: 1708/Chny/2019 - - - Dated:- 15-6-2021 - Shri Duvvuru Rl Reddy, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Shri. G. Johnson, Addl. CIT For the Respondent : Shri. G. Baskar, Advocate ORDER PER S. JAYARAMAN, ACCOUNTANT MEMBER: The Revenue filed this appeal against the order of the Commissioner of Income Tax (Appeals)-3, Coimbatore in ITA No. 201/17-18 dated 11.03.2019 for the assessment year 2014-15. 2. M/s. SKM EGG Products Export (I) Ltd., the assessee , is the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 115JB to Nil. 3) The learned CIT(A) has erred in not considering the workings tabulated from A.Y 1999-2000 onwards upto A.Y 2013-14 in the assessment order which show that there is no brought forward loss or unabsorbed depreciation available as per books of accounts, and hence the assessee is liable to pay tax under MAT workings 4) The learned CIT(A) has erred in not considering that In Section 115JB, since nowhere it is mentioned that the loss of a year is to be set off against the book profit of subsequent year only and hence If there is surplus under the head P L Account at the beginning of the year loss if any of that year will get absorbed against the brought forward surplus and the resultant figure gets carried forward in the books of account. 5) For these and other grounds that may be adduced at the time of hearing, the order of the CIT (A) may be cancelled and that of the A.O. restored. 5. The case was heard through video conferencing. The ld. DR submitted that at the time of passing the assessment order itself, the AO considered the case laws relied on by the ld CIT (A) and correctly held that they were not applicable to the facts of this case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 (+)11,94,99,132 (+)45,96,58,097 2010-11 0 0 (+) 29,57,006 (+)46,26,15,103 2011-12 (-)8,60,69,968 (-)4,60,27,218 (-)13,20,97,186 (+)33,05,17,917 2012-13 (-)9,00,73,490 (-)8,13,99,712 (-)17,14,73,205 (+)15,90,44,712 2013-14 0 0 (+) 1,36,54,239 (+)17,26,98,951 5.1 The ld DR submitted that as per provisions of section 115 JB (2) Explanation 1 Clause (iii) , the amount of loss brought forward or unabsorbed depreciation whichever is less as per books of account is allowable as a deduction from the book profit. As per the workings tabulated supra, the assessee had incurred losses in the first two years ie in the AYs 1999-00 2000- 01 , which were completely set off, ie both the losses viz unabsorbed business and unabsorbed depreciation losse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... convey the same meaning as held by various judicial authorities. The Act nowhere imposes a condition that in order to carry forward the losses the reserves should be in the negative side as held by various judicial authorities and hence the argument of the Assessing Officer that the reserves of the company has a credit balance is not legal. The Ld DR supported the view of the ld CIT(A) that the loss or unabsorbed depreciation of one year can be set off against the profit of subsequent year only and till such set off, the amounts are carried forward to subsequent year, or in other words are brought forward in the subsequent year from earlier year and or available for set off of as per provisions of Clause (III) of Sec.115JB(2) of the Act. Further, he relied on the decisions in the case of Go Airlines (India) Ltd vs DCIT , ITAT Mumbai in ITA No 3788/Mum/2018 dt 13.01.2021 for Ay 2014-15 (2021) 198 DTR (Mumbai) (Trib) 113 and DCIT vs Binani Industries Ltd ( 2017) 82 taxmann.com 320 (Kolkatta- Trib). 7. We heard the rival submissions and gone through relevant material. The facts are that as per books, the profit and Loss account balance as on 01.04.2013 in the balance sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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