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TMI Blog2022 (11) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances. Learned lower authorities have correctly interpreted the law and denied benefit to the assessee. Whenever, the provisions of law are clear and unambiguous they should be given full effect thereof and should be read as it is without adding or subtracting anything. No infirmity in the orders of the lower authorities. AO is correct in not excluding the book profit earned by the assessee from the provisions of 115 JB of the income tax act as the assessee s net worth turned positive during the year. There is no infirmity in the order of the learned CIT A in confirming the same. Solitary ground of appeal of the assessee is dismissed. - ITA No. 4649/Mum/2018 - - - Dated:- 20-9-2022 - Shri Prashant Maharishi, AM And Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/05/2018, therefore, assessee is in appeal before us. 04. The issue in this appeal shows that assessee company was declared as a sick Industrial company in terms of provision of section 3 (1) (o) of The Sick Industrial companies Act. State bank of India was appointed as operating agency to formulate revival scheme. The scheme of revival of the assessee company was sanctioned by BIFR as per order dated 8/9/2008. The net worth of the assessee company became positive as per the audited balance sheet as on 31/3/2009 and provisional balance sheet as on 30/3/2010. Accordingly, the assessee company approached the operating agency to discharge it from the purview of BIFR. Subsequently the order dated 16/6/2010 was passed where the company ceas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by BIFR. The consequent BIFR order dated 16/06/2010 and the fact that later on the company was discharged from the provisions of industrial companies act. He further referred that the income tax department preferred an appeal before the appellate authority challenging the continuation of the benefit to the assessee and the same was dismissed. Therefore, the claim of the learned authorised representative is that despite, the companies net worth turning out to be positive, unless the rehabilitation scheme is over i.e. the impugned timeframe, the assessee should be allowed the benefit of exemption under the provisions of Section 115 JB of the act. Therefore, he opposes the orders of the lower authorities. 06. The learned departmental repr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the provisions of Section 115 JB of the Income Tax Act clause [vii] of explanation [1] provides for exclusion from book profit the amount of profit of a sick industrial Co. from the assessment year in which the said company has become a sick company and ending with the assessment year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses. Undisputedly, the net worth of the company has turned positive in the impugned assessment year. Naturally, therefore, for this year, assessee is not eligible for exclusion of its profit from the chargeability of book profit tax. There is no provision under the income tax act or under the sick industrial Companies act to exclude such profit from book profit t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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