2007 (10) TMI 543

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d in filing of the appeal are as follows : The assessee is a company in which the public are not substantially interested. For the relevant assessment year, the assessee filed a return of income on 31-12-1990. While completing the assessment, the assessing officer disallowed certain claims, including adjustment of book profit liability under Section 115J of the Income-tax Act as unabsorbed depreciation. The assessing officer further held that while computing the deduction under Section 80HHC, excise duty, sales tax and scrap sales should be included and thus passed assessment order. 3. The assessee carried the matter on appeal to the Commissioner of Income-tax (Appeals), who inter alia held that computation of book profit is done....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... first question of law that the issue is covered in favour of the revenue by the decision of this Court rendered on 19-11-2001 in the case of Commissioner of Income-tax v. Fab Exports (P.) Limited reported in (2002) 258 ITR 56. In the said decision, this Court has held that the plain words of Section 115J(2) are that the determination of the amount in relation to the previous year to be carried forward to the subsequent year under the provisions referred to therein shall not be affected by anything contained in sub-section (1). Those words are clear enough. The fact that a part of the income, which was set off against the carried forward loss and depreciation even when, as a result of such set off, was not available for being taxed, was nev....