TaxTMI 
TaxTMI 
2003 (2) TMI 5
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....s of the case that the profit on sale of capital asset is to be reckoned in computing the book profit under section 115J of the Income-tax Act, 1961? (By the assessee) 3. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the assessee is entitled to set off the amount of loss or the amount of depreciation whichever is less in respect of past years against the profits of the year ending on September 30, 1987, relevant to the assessment year 1988-89? (By the Revenue) 4. Whether, on the facts and in the circumstances of the case and the circular of the Board being in accordance with the relevant principles of laws having bearing on the issue, should not the Tribunal have confirmed the ass....
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....rder sheet entry "NA" passed by the Assessing Officer would amount to an assessment order and non-communication of it to the assessee cannot invalidate such an order. So far as the first question is concerned, we agree with the Tribunal. In spite of the issue of the notice under section 139(2) dated September 16, 1988 and the notice issued under section 142(1) dated March 8, 1989, the assessee did not furnish the return and did not comply with the terms of the notices. Such default on the part of the assessee should lead to an assessment under section 144. The relevant entry is as follows: "Return of income not yet filed. There is no taxable income from 1984-85 onwards. Assessment may be closed as N.A. for statistical purposes". From the a....
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....hould be reckoned for the purpose of computation of book profit. The second question is answered in favour of the Revenue and against the assessee. Now, we come to the question raised at the instance of the Revenue. The assessment year is 1988-89. Section 115J stipulates computation of book profit for the purpose of assessment under section 115J, the special provisions relating to certain companies. As per clause (iii) the amount of the loss or the amount of depreciation which would be required to be set off against the profit of the relevant previous year is the amount worked out as if the provisions of clause (b) of the first proviso to sub-section (1) of section 205 of the Companies Act are applicable. In G.T.N. Textiles Ltd. [2001] 24....