https://www.taxtmi.com/caselaws?id=5744 The SC interpreted "loss" in section 205(1), first proviso, clause (b) of the Companies Act, 1956, as incorporated into section 115J of the Income-tax Act, 1961, for computing book profit. The court held that "loss" refers to the amount arrived at after providing for depreciation, not pre-depreciation loss. The HC's contrary view was rejected as it would partially defeat section 115J's objective of ensuring profitable companies pay minimum corporate tax. The court emphasized that unabsorbed depreciation should be considered in book profit computation, aligning with the legislative intent to address "zero tax" companies. en-us Tue, 13 Apr 1999 00:00:00 +0530 Tue, 11 Feb 2025 10:16:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5744 The SC interpreted "loss" in section 205(1), first proviso, clause (b) of the Companies Act, 1956, as incorporated into section 115J of the Income-tax Act, 1961, for computing book profit. The court held that "loss" refers to the amount arrived at after providing for depreciation, not pre-depreciation loss. The HC's contrary view was rejected as it would partially defeat section 115J's objective of ensuring profitable companies pay minimum corporate tax. The court emphasized that unabsorbed depreciation should be considered in book profit computation, aligning with the legislative intent to address "zero tax" companies. Case-Laws Income Tax Tue, 13 Apr 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5744