2007 (3) TMI 160

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....ould be taken without adjusting the profit earned in some of the intervening years against the loss of other years?" 2. The assessee company is engaged in the business of manufacture of yarn.  The assessment was completed under Section 143(3) of the Income Tax Act (for brevity, "the Act") computing taxable income at nil and book profits under section 115J of the Act at Rs.26,70,467/-.  Finding there was a mistake in the assessment order in the computation of profits under Section 115J, viz., the unabsorbed losses were taken at a higher figure, as furnished by the assessee, without considering the profits earned by the assessee in the earlier years,  notice under Section 154 of the Act was issued.  The assessee objected ....

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....applicable, to be 'as computed under this Act in respect of any previous year relevant to the assessment year. . .'By declaring in sub-section (2) that nothing contained in sub-section (1) will affect the determination of the amounts in relation to the relevant previous year to be carried forward to the subsequent year or years under section 32(2), section 32A(3), section 72(1)(ii), section 73, section 74, section 74A(3) or section 80J(3), Parliament has made it clear that the determination of the amounts to be carried forward is to be made in the normal way by applying the provisions of the Act as if section 115J(1) had not been applied to the concerned assessee. The term 'affect' in sub-section (2) of section 115J does not imply only an e....