Tax authority's substitution of projected figures with actuals overturned; original acquisition valuation upheld; transfer pricing issues remitted for...
Beneficial owner held liable for differential customs duty; royalties added under Rule 10(1)(c); confiscation, penalties under s.111(m), s.114A, s.112...
The ITAT dismissed the Revenue's appeal and upheld the order of the CIT(A) in favour of the assessee. It held that, for computation of book profit u/s 115JB, clause 2(iii) of Explanation 1(i) mandates allowing set-off of the lower of brought-forward business loss or unabsorbed depreciation as per the books of account, on a cumulative basis. Relying on the binding reasoning of a non-jurisdictional High Court and noting dismissal of the Revenue's SLP, the ITAT confirmed that such losses remain available for reduction from book profits until fully absorbed by subsequent profits. No interference with the CIT(A)'s order was warranted, though the matter stands remitted to the AO only for quantification.
The ITAT dismissed the Revenue's appeal and upheld the order of the CIT(A) in favour of the assessee. It held that, for computation of book profit u/s 115JB, clause 2(iii) of Explanation 1(i) mandates allowing set-off of the lower of brought-forward business loss or unabsorbed depreciation as per the books of account, on a cumulative basis. Relying on the binding reasoning of a non-jurisdictional High Court and noting dismissal of the Revenue's SLP, the ITAT confirmed that such losses remain available for reduction from book profits until fully absorbed by subsequent profits. No interference with the CIT(A)'s order was warranted, though the matter stands remitted to the AO only for quantification.
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