2014 (10) TMI 745

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....on and that the assessee was entitled to deduction of unabsorbed depreciation? (2) Whether the Appellate Tribunal ought not to have considered the specific distinguishable words used in section 115J(1A) for unabsorbed business loss and unabsorbed depreciation?" The assessee had filed appeal against the order of DCIT (Asstt.) Spl. Under section 143(3) of the Act for the assessment year 1989-90. It was the case of the assessee that had it been the case of loss which included depreciation then there was no need of writing the word 'loss' or depreciation. The first appellate authority partly allowed the appeal and deleted the interest charged by the Assessing Officer u/s 234. The CIT (Appeals) however held that for the purpose of computation ....

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....ax Act and if the total income so computed be less than thirty per cent of the book profit than profit and loss account of the company for the relevant previous year shall have to be prepared under sub- section 1A of Section 115 J in accordance with Parts II and III of Schedule VI of the Companies Act. The book profit so arrived at under the Companies Act shall be suitably adjusted so as to satisfy the requirements of the explanation. We are in this case concerned with the interpretation of clause (iv) under the Explanation to Section 115. 13. In example - (1) Rs. 3 lacs is the depreciation. Rs. 2 lacs is the loss after taking into account the depreciation. The loss being lower than the amount of depreciation, it will be taken into account....