https://www.taxtmi.com/caselaws?id=430542 Under clause (vii) of Explanation 1 to section 115JB, the exclusion from book profit computation for a sick industrial company applies only up to the assessment year in which the company's entire net worth becomes equal to or exceeds its accumulated losses. The assessee had been under rehabilitation, but its net worth turned positive during the relevant year and it was discharged from the sick industrial company regime. In the absence of any provision in the Income-tax Act, 1961 or the Sick Industrial Companies (Special Provisions) Act, 1985 allowing the benefit to continue beyond that point, the exclusion ceased to operate. The assessee was therefore not entitled to the claimed exclusion for that year, and the Assessing Officer's adjustment was sustained. en-us Tue, 20 Sep 2022 00:00:00 +0530 Tue, 22 Nov 2022 09:02:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=430542 Under clause (vii) of Explanation 1 to section 115JB, the exclusion from book profit computation for a sick industrial company applies only up to the assessment year in which the company's entire net worth becomes equal to or exceeds its accumulated losses. The assessee had been under rehabilitation, but its net worth turned positive during the relevant year and it was discharged from the sick industrial company regime. In the absence of any provision in the Income-tax Act, 1961 or the Sick Industrial Companies (Special Provisions) Act, 1985 allowing the benefit to continue beyond that point, the exclusion ceased to operate. The assessee was therefore not entitled to the claimed exclusion for that year, and the Assessing Officer's adjustment was sustained. Case-Laws Income Tax Tue, 20 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=430542