TaxTMI 
TaxTMI 
2013 (8) TMI 1118
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....case are that in case of the assessee an assessment u/s 143(2) was completed on 14.11.2007 determining the book profit u/s. 115JB at ₹ 6,48,29,629/- and NIL under normal provisions of the Act for the Asst. Year 2005-06. The book profit u/s 115JB was computed after allowing the deduction of ₹ 1,71,88,763/- which included the loss of ₹ 1,51,06,838/- relating to a firm. Since the loss of Rs. l,71,88,763/- included the loss of ₹ 1,51,06,838/- relating to the firm which could not be allowed in the hands of the company u/s 115JB, the Assessing Officer issued notice u/s 154 of the Act. 3. Further, the Assessing Officer noted that earlier the business was carried on by firm viz., M/s Shiv Keshav Transport which later was c....
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....of Section 47(xiii) of the Act can be claimed set off while computing the income of the successor company. 5. The Assessing Officer did not accept the explanation of the assessee and held that there was a mistake apparent from record, and rectification order was passed by adding losses relating to 'firm' which was given set off in the computation for book profit u/s 115 JB. 6. Aggrieved, the assessee carried the matter in appeal before the CIT(A) and contended before him that the issue involved in the case whether the provisions of section 72A(6) of the Income-tax Act, 1961 are applicable for computation of book profit u/s 115JB, whether the assessee can claim set off of losses relating to a firm whether the provisions of company Act co....
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.... be the loss/allowance of the Successor Company, and the appellant has calculated the book profit as per section 115JB and explanation 1 and 2 of section 115JB and as per parts of II and III of schedule VI of companies act, 1956, the accumulated loss and unabsorbed depreciation were taken into account as appeared in the balance sheet of the company i.e M/s Shiv Keshav Transport Pvt. Ltd. as on 31.3.2004 and there is no business loss of ₹ 1,51,06,839/- as taken by the AO in the firms books and the entire loss of ₹ 1,71,88,763/- was appearing in the books of the company as on 31.3.2004. From all this, it is evident that the action proposed to be taken by the Assessing Officer was not in respect of a mistake apparent from record, r....