1996 (7) TMI 22

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....T, Bhopal), under section 256(1) of the Income-tax Act, 1961, registered as RA No. 350/Ind. of 1993, the Tribunal stated the case and referred the undernoted question, categorised it as one of law, arising out of the order dated October 6, 1993, passed in ITA No. 59/Ind. of 1991 for the assessment year 1988-89, for our opinion : "Whether, on the facts and in the circumstances of the case, the Inc....

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....per the profit and loss account after adding back the amount of tax was Rs. 2,68,314. It was contended by the assessee that for the purpose of computation of income under section 115J of the Income-tax Act, 1961 (for short the "Act"), it was entitled to set off the unabsorbed depreciation of Rs. 1,93,683 as the same was less than the total loss of Rs. 2,72,656. This contention was negatived by the....

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....absorbed depreciation whichever was less in comparison to the total of the unabsorbed depreciation and the business loss. Dissatisfied by this order, the Department filed the application under section 256(1) of the Act, on which the Tribunal stated the case and referred the aforesaid question for our opinion. We have heard Shri Anand Mohan Mathur, learned senior counsel, with Shri A. K. Shrivasta....

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.... off the amount of unabsorbed depreciation. In the instant case, the unabsorbed depreciation is also not fully absorbed and, therefore, the book profit needs to be taken at nil." The apex court noted in Garden Silk Weaving Factory v. CIT [1991] 189 ITR 512 (SC), that there was a strong cleavage of opinion among the various High Courts in regard to the point in question and after consideration hel....