9911796707
TMI Blog2022 (11) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... n in computing tax of Rs.1,99,395 by applying provisions of Mat under Section 115JB, without appreciating the fact that the appellant was a sick company under BIFR and accumulates losses is still not recouped. Hence it is exempt from provision of section 115JB of the Income-tax Act, 1961 even though the net worth of the company has become positive." 02. Brief facts of the case show that assessee is a company, filed return of income on 12/9/2012 at Rs. Nil after claiming the entire business income of Rs. 170,50,855/- against unabsorbed depreciation and brought forward business losses. The income of the assessee was assessed u/s 143 (3) of the income tax act by order dated 9/3/2015. The learned assessing officer computed profit u/s 115 JB at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the BIFR was erroneous. In fact, the DGIT was concerned with the income tax relief mentioned in the scheme continuing to be granted to the assessee despite company coming out of SICA. Appellate authority [AIFR] dismissed the appeal of DGIT and therefore the assessee is contending that it is eligible for the benefit u/s 115 JB of the Act, even though it's net worth has turned positive. The revenue authorities strictly interpreted the provisions of Section 115 JB wherein clause [vii] of explanation [1] provides that the moment the net worth of the company becomes equal to or exceeds the accumulated losses; the company is obliged to pay book profit tax u/s 115 JB of the Income Tax Act on its book profit. 05. The learned authorised repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be provided to the assessee. Therefore, according to him the orders of the lower authorities cannot be challenged. 07. We have carefully considered the rival contention and perused the orders of the lower authorities. Undoubtedly, the assessee was referred to the board of industrial and financial Reconstruction Under the provisions of the sick industrial Companies act. Assessee was declared a sick company u/s 3 [1] [o] of the SICA. Rehabilitation scheme of the assessee was approved by the board of industrial and financial Reconstruction. It is also undisputed that subsequently by the order dated 16/6/2010 the assessee was discharged from all the onerous liability of sick industrial Companies act. Further, the remaining period of rehabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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