Tribunal Directs Recomputation of Book Profits, Upholds 60% Depreciation on Computer Peripherals The appeal by the Department and cross objection by the assessee were dismissed. The Tribunal directed the Assessing Officer to re-compute the book ...
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Tribunal Directs Recomputation of Book Profits, Upholds 60% Depreciation on Computer Peripherals
The appeal by the Department and cross objection by the assessee were dismissed. The Tribunal directed the Assessing Officer to re-compute the book profits after verifying the correct figures of brought forward business loss or depreciation. The Tribunal upheld the decision of the ld. CIT(A) allowing 60% depreciation on computer peripherals based on a Delhi High Court ruling.
Issues involved: Appeal against the order of ld. CIT(A) for A.Y. 2009-10, involving computation of book profits u/s 115JB and depreciation on computer peripherals.
Issue 1 - Computation of Book Profits u/s 115JB: - The assessee company declared a loss in the relevant assessment year. - AO completed the assessment u/s 115JB without deducting any carried forward unabsorbed depreciation or business loss. - Ld. CIT(A) partly allowed the appeal in favor of the assessee, directing the AO to verify and allow the benefit of minimum of brought forward business loss or depreciation while computing the book profit u/s 115JB. - Department appealed against this decision, questioning the allowance of business loss and depreciation. - The contention was that the company was not entitled to carry forward business loss due to a change in shareholding pattern. - Ld. Counsel argued that sec. 79 does not apply to the computation of book profits u/s 115JB. - Tribunal found that the AO did not disallow the claim under sec. 79 but due to lack of details of business loss in the return. - Tribunal directed the AO to re-compute the book profits after verifying the correct figures of brought forward business loss or depreciation.
Issue 2 - Depreciation on Computer Peripherals: - AO disallowed 60% depreciation claimed by the assessee on UPS, allowing only 15%. - Ld. CIT(A) relied on a Delhi High Court decision allowing 60% depreciation on computer peripherals. - Tribunal dismissed the appeal on this ground, following the High Court decision.
Separate Judgment by Judges: - No separate judgment delivered by the judges.
Conclusion: - The appeal by the Department and cross objection by the assessee were dismissed. - The order was pronounced on 31/05/2013.
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