https://www.taxtmi.com/caselaws?id=17130 The court addressed the interpretation of 'loss' under Explanation (iv) to section 115J of the Income-tax Act, emphasizing the significance of preparing profit and loss accounts under the Companies Act for computing book profit. It highlighted the incorporation of section 205 of the Companies Act into the Income-tax Act to determine book profit, stressing that only loss or depreciation, whichever is less, can be set off against profits. The court also discussed the consideration of cumulative loss and unabsorbed depreciation for all preceding assessment years under the Companies Act, emphasizing the need for accurate assessment of losses and profits to determine taxable book profits under section 115J. The Tribunal's order was set aside for reevaluation to ensure precise computation of book profit. en-us Sat, 30 Nov 1996 00:00:00 +0530 Tue, 15 Sep 2009 13:27:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17130 The court addressed the interpretation of 'loss' under Explanation (iv) to section 115J of the Income-tax Act, emphasizing the significance of preparing profit and loss accounts under the Companies Act for computing book profit. It highlighted the incorporation of section 205 of the Companies Act into the Income-tax Act to determine book profit, stressing that only loss or depreciation, whichever is less, can be set off against profits. The court also discussed the consideration of cumulative loss and unabsorbed depreciation for all preceding assessment years under the Companies Act, emphasizing the need for accurate assessment of losses and profits to determine taxable book profits under section 115J. The Tribunal's order was set aside for reevaluation to ensure precise computation of book profit. Case-Laws Income Tax Sat, 30 Nov 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17130