TaxTMI 
TaxTMI 
2011 (3) TMI 267
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....return showing losses. Since losses under the normal provisions were much higher than the loss computed as per the book profit under section 115JA of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), this return was processed under section 143(1) of the Act and was completed on March 7, 2002 after accepting the return as filed. The Assessing Officer, however, issued notice under section 154/143(1) of the Act as according to him a mistake apparent on the face of record had occurred while accepting the return vide assessment order dated March 7, 2002. We may point out here that the assessee had incurred losses in earlier years which remained unabsorbed and were being carried forward to successive assessment years. Likewise, the....
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....e of section 154 of the Act. Thus, the Assessing Officer had no power to take recourse to the provisions of section 154 of the Act. 3. Mr. Vohra, learned counsel for the respondent-assessee has pointed out the circumstances under which the adjustment of Rs. 1,39,36,000 was made against the profits in the assessment year 2000-01. He has pointed out that in the immediate previous year, i.e., in the assessment year 1999-2000, there were profits and the return was filed under the normal provisions and not under section 115JA of the Act. At the same time, there were unabsorbed losses and unabsorbed depreciation of the previous year which were carried forward to this year. He has clarified that in so far as the unabsorbed depreciation i....
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....ermissible under section 154 of the Act. Furthermore, it is argued, it amounts to even disturbing the assessment in respect of the assessment year 1999-2000 which could not be done even while making regular assessment of the assessment year 2000-01. 4. The aforesaid contention of Mr. Vohra carries sufficient strength. However, in an attempt to mollify the same, Mr. Sahni had produced the copies of the assessment in respect of the assessment year 1999-2000 and submitted that the MAT computation done by the assessee itself in that year and assured that the carried forward depreciation was Rs. 80,38,600 only. For this purpose, he referred to the following computation and given by the assessee in the assessment year 1999-2000 : ....
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....reciation 1,39,36,000 (ii) brought forward business loss (excluding depreciation) 14,21,44,000 mat computation done by assessee Profit as per profit and loss account 58,98,000 Less : Lower of unabsorbed depreciation and brought forward business loss (1,39,36,000) [as per Explanation (ii) of the second proviso to section 115JA(2)] Book profit (80,38,000) As on 31-3-1999 (as per books) (iii) unabsorbed depreciation 1,39,36,000 (iv) business loss (excluding depreciation) to be carried for ward 13,62,46,000 *[Rs. 14,21,44,000 - Rs. 58,98,000] Aggregate loss 15,01,82,000 Assessment year 2000-01 MAT computation done by assessee ....