https://www.taxtmi.com/caselaws?id=6097 Section 115J(1) applies only after permissible deductions under the Act are taken into account to determine whether the company's assessable income falls below 30% of book profits; the deeming of total income at 30% does not ignore such deductions, but presupposes their consideration, and tax is then levied on the notional income accordingly. Section 115J(2) merely preserves the pre-existing statutory right to carry forward only those unabsorbed items (e.g., depreciation, investment allowance, business losses, and eligible deductions) that are otherwise carry-forwardable under the Act; it does not confer any additional carry-forward entitlement. As no law existed to compute income in the relevant territory before extension of the Act, no depreciation could be claimed/allowed/carried forward for pre-extension years. Appeals dismissed; HC affirmed. en-us Tue, 03 Dec 2002 00:00:00 +0530 Thu, 25 Dec 2025 16:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6097 Section 115J(1) applies only after permissible deductions under the Act are taken into account to determine whether the company's assessable income falls below 30% of book profits; the deeming of total income at 30% does not ignore such deductions, but presupposes their consideration, and tax is then levied on the notional income accordingly. Section 115J(2) merely preserves the pre-existing statutory right to carry forward only those unabsorbed items (e.g., depreciation, investment allowance, business losses, and eligible deductions) that are otherwise carry-forwardable under the Act; it does not confer any additional carry-forward entitlement. As no law existed to compute income in the relevant territory before extension of the Act, no depreciation could be claimed/allowed/carried forward for pre-extension years. Appeals dismissed; HC affirmed. Case-Laws Income Tax Tue, 03 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6097