2021 (2) TMI 665

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....reinafter referred to as Act) dated 23/12/2016 by the ld. DCIT 5(1)(1), Mumbai (hereinafter referred to as ld. AO). 2. The first issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in upholding the action of the ld. AO in denying the adjustment in book profit by not giving deduction towards unabsorbed depreciation amounting to Rs. 8,48,95,742/- on the ground that the same has already been adjusted in the preceding years. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is a company engaged in the business of operating air craft for carriage of passengers and goods and had filed its return of income for the A.Y.2014-15 on 29/11/2014 declaring nil losses....

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.... same amount, the assessee would not be entitled for reduction as contemplated in the year under consideration. This action of the ld. AO was upheld by the ld. CIT(A). 3.2. We find that we are now concerned with the computation of book profits u/s.115JB of the Act wherein one of the items eligible for reduction would be the lower of brought forward cash loss or brought forward depreciation loss as per books of accounts. We find that provisions of Sections 32(2) and 72 of the Act explicitly provide that the amount would be carried forward for set off in the succeeding years and it should be arrived at after deducting the amounts to which effect has already been given. We find that such provisions are apparently not present in computing th....

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....ook profits u/s 115JB of the Act in the facts of the case. 3.1. The Learned AO held that there was no loss available for reduction from the book profits u/s 115JB of the Act and hence the sum of Rs. 2,18,0,9000/- reduced by the assessee was not considered for reduction by the Learned AO. On first appeal, the said reduction was granted by the Learned CITA by relying on certain case laws. Aggrieved, the revenue is in appeal before us on the following ground:- (ii) That the Ld. CIT(A) has erred in Law as well as in facts and circumstances of the case in directing to reduce the Book Profit u/s 115JB by an amount of Rs. 2,18,09,000/- when the admissible amount, i.e., lower of 'unabsorbed depreciation' or 'business l....