2017 (12) TMI 1046

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....ner of Income tax(Appeals) in not allowing deduction of brought-forward losses/depreciation while computing book profit u/s. 115JB of the Act. 2. We have heard the parties and perused the records. The assessee is engaged in the business of conducting Coaching Classes. It filed its return of income for the year under consideration declaring nil income under normal provisions of the Act and nil book profit u/s. 115JB of the Act. The assessment was originally completed by Assessing Officer accepting the book profit declared by the assessee. The Ld. Commissioner of Income tax noticed that the accounts of the assessee did not show any brought forward loss/depreciation. Accordingly he took the view that the AO had wrongly allowed the claim for....

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....he ld. Commissioner of Income tax(Appeals). Aggrieved, the assessee has filed the present appeal before us. 5. The ld. Authorised Representative (AR) placed reliance on the decision rendered by the Ahmedabad Bench of the Tribunal in the case of Surat Textile Mills Ltd. vs. DCIT (2016) (70 taxmann.com 158) in order to contend that the capital reduction carried out in order to rehabilitate the company should be ignored for the purpose of Section 115JB of the Act. 6. On the contrary the ld. Departmental Representative (DR) submitted that the book profit u/s. 115JB of the Act has to be computed from the financial statements prepared as per the provisions of Companies Act. He submitted that the assessee had set off the brought forward loss....