TaxTMI 
TaxTMI 
TaxTMI 
2014 (12) TMI 1407
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....e paper book. He submits that all these questions which have been formulated by the Revenue are substantial questions of law and the Appeal, therefore, deserves to be admitted. 2] Mr. Suresh Kumar submits that the Assessee filed a return of income declaring NIL income. That was processed under section 143(1) of the Income Tax Act, 1961(for short I.T. Act). During the assessment proceedings, the Assessing Officer, inter alia, disallowed certain amount. That was towards foreign exchange loss, set off of brought forward losses under section 79 of the Income Tax Act. He also computed the book profit at Rs.16,45,76,748/­ under section 115JB of the Income Tax Act. The order of assessment was passed on 19th March, 2004. 3] The Assessee prefe....
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....ts that in this order the Division Bench held that the activity of the Assessee therein(namely, the Respondent herein) is similar to that of Hindustan Oil Exploration Co.Ltd. There, in relation to similar activity this Court had decided that the same falls within the definition of the term "production". Secondly, he also relies upon a finding which has been rendered by this Court in that very order. He had also relied upon the guidance note on accounting for oil and gas producing activities issued by the Council of the Institute of Chartered Accountants of India. He relies upon section 211(3A) of the Indian Companies Act, 1956. The reliance is also placed upon a judgment of the Hon'ble Supreme Court in the case of M. Rajamoni Amma and A....
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....d to the benefit of carry forward and set off of losses. He, therefore, upheld the order of the Assessing Officer. 7] In relation to this question, the Tribunal firstly reproduced section 2(18)(b)(B)(c) of the Act in para 19 of its order, thereafter, it referred to the share holding pattern of the Assessee. 8] It, then, concluded that the chart shows that shares of Tata Industries Limited have been transferred to Tata Power Co. Ltd. Both Tata Industries Limited and Tata Power Co. Ltd. are companies in which public is substantially interested. The shares of these companies are traded in the stock exchange. It, therefore, accepted the argument of the Assessee's counsel that the facts of the present case are covered by the provision, nam....
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....of Income Tax (Assessment) and Others (supra) would indicate that the Hon'ble Supreme Court was considering the ambit and scope of section 43A of the Indian Companies Act, 1956 and for the purposes of satisfying the conditions stipulated therein. Particularly, after the amendment to this provisions by Act 31 of 1988 and by Act 51 of 2000. Be that as it may, that the Hon'ble Supreme Court rendered its decision in 1992 when section 43A came to be amended by Act 31 of 1988 and prior thereto by Act 41 of 1974. However, the Hon'ble Supreme Court was concerned with a situation where the Directors/Appellants before the Hon'ble Supreme Court were on the Board of a company known as M/s. Rajmohan Cashews Ltd. The assessment was comple....
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....situation is that if the Assessee answers the definition in the Income Tax Act, 1961 which we have referred and in detail above, then, no reliance can be placed on section 79 of the Income Tax Act. Section 79 provides for carry forward and set off losses in case of certain companies. That refers to a change in the share holding pattern taking place in a previous year in the case of a company, not being a company in which the public are substantially interested. Therefore, the prohibition which is carved out by this section becomes applicable. Obviously, therefore, if it is a company in which public are substantially interested, applicability of section 79 is ruled out. In the present case, we are not concerned with the section 43A of the In....
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....pany has been prepared and maintained in terms of section 211(3A) and section 211(3C) of the Indian Companies Act, 1956. The accounting standards which have been issued by the ICAI are applied and followed. The depletion on producing properties has been calculated as per the guidance Note on accounting of oil and gas producing activities issued by the ICAI. Mr. Suresh Kumar could not dispute that these accounting standards and the guidelines were specifically relied upon before the Commissioner (Appeals). The reliance thereon is to be found in para 10.1 of his order. However, he still proceeds to uphold the order passed by the Assessing Officer. While correcting the Commissioner on this count, the Tribunal notes the argument of both sides. ....