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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 ..... roducts and running Poultry Farm. It filed its e-return of income for the assessment year 2014-15 on 27.10.2014 after claiming set-off of brought forward losses and unabsorbed depreciation under the normal provisions of income -tax computation as well as under MAT provisions. While doing the assessment, the A O completely rejected the assessee's MAT workings on the ground that the assessee's book profit during the year was at Rs. 9,93,85,557/- and that as per books of account there is no brought forward business loss / unabsorbed depreciation and the losses as per books of AYs 2011-12 &2012-13 got absorbed against the surplus brought forward from the earlier years and thus, in effect there remains no brought forward business loss / unabsorb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hile working out income u/s 115JB ( of the Act thereby reducing the income u/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 br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,34,628 2002-03 0 0 (+) 3,83,36,352 (-) 9,49,98,276 2003-04 0 0 (+) 5,07,20,693 (-) 4,42,77,583 2004-05 0 0 (+) 3,87,53,375 (-) 55,24,208 2005-06 0 0 (+) 5,07,20,693 (+) 4,51,96,485 2006-07 0 0 (+) 9,28,04,663 (+)13,80,01,148 2007-08 0 0 (+)10,97,61,692 (+)24,77,62,840 2008-09 0 0 (+) 9,23,96,125 (+)34,01,58,965 2009-10 0 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the head P& L account at the beginning of a year in the books, the loss, if any, of that year will get absorbed against the brought forward surplus in the books and the resultant figure gets carried forward in the books of Account. Therefore, the ld DR submitted that the order of the CIT(A) may be cancelled and that of the A.O. be restored. 6. Per contra, the Ld A R submitted that the book profit for the purpose of MAT is different from the Profit shown in the Profit and Loss account prepared as per the Companies Act. The book profit is arrived at after making so many adjustments as provided in the Statute (Income Tax Act), whereas the profit as per Profit and Loss account will be without any such adjustments and hence both cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 was at Rs. 11,83,12,100/-, the assessee's book profit during the year was at Rs. 9,93,85,557/- and the book profit from AYs 1999-00 to AY 2013-14 as extracted in the tabular form in para 5, supra , are not disputed. Now, we are concerned with the computation of book profits u/s.115JB of the Act, wherein one of the items eligible for reduction would be the lower of brought forward cash loss or brought forward depreciation loss as per books of accounts. We find that what is contemplated in Clause (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 was at Rs. 11,83,12,100/-. 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. This decision is also in accordance with the case law relied on by the assessee viz 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. Therefore, We find merit in the Revenue's submissions and hence allow the Revenue's ..... X X X X Extracts X X X X X X X X Extracts X X X X
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