TaxTMI 
TaxTMI 
2025 (11) TMI 1767
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....se activities contributed to the delay which was neither willful nor wanton. The Revenue submitted that there will not be case of any non-compliance now. We have considered the justification put forth by the Revenue and we are satisfied with their adequacy. The Ld. AR did not pose any serious objections to the delay. Accordingly, we hereby condone the delay and proceed to adjudicate this appeal. 3.0 The only issue contested by the Revenue through its grounds of appeal is regarding the decision of Ld.CIT(A) in deleting the addition of Rs. 23,79,08,002/- on account of unobserved depreciation. Brief factual matrix of the case is that the assessee company M/s. Triumph International (India) Private Limited, a wholly-owned subsidiary of Triumph Universa AG, is engaged in the manufacture and sale of women's foundation garments. For the Assessment Year 2018-19, the assessee filed its return of income on 04.03.2019, declaring a nil total income after setting off brought forward losses against the declared income of Rs. 15,66,94,670. Under Section 115JB, the assessee declared a book loss of Rs. 18,38,54,882. The Ld. Assessing Officer completed the assessment under Section 143(3) read with....
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....of the Act by relying on the Karnataka decision in the case of Bangalore International Airport Ltd. [2023] 154 taxmann.com 394. 6.0 The Ld.Counsel for the assessee submitted that, as per Explanation under sub-section (2) of Section 115JB of the Act, "book profit" is the net profit shown in the Profit and Loss account as prepared under Sub-section (2) to be reduced, inter-alia, by the amount of loss brought forward or unabsorbed depreciation whichever is less, amongst various other adjustments. Attention was invited to the following extract of the impugned explanation:- "(iii) The amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account. Explanation- For the purposes of this clause, (a) The loss shall not include depreciation; (b) The provisions of this clause shall not apply if the amount of loss brought forward or unabsorbed depreciation is nil" Thus, it was argued that the assessee has set off the lower of i) total amount of loss brought forward (excluding unabsorbed depreciation) as per books of accounts and ii) total amount of unabsorbed depreciation as per books of accounts for the purposes o....
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.... "12. We have carefully perused the explanation to section 115JB of the Act. Clause 2(iii) of Explanation 1 (i)of section 115JB makes it clear that the amount of loss brought forward or unabsorbed depreciation which ever is less as per the books of accounts must be permitted to be set off. The CIT(A)2 and the ITAT3 placing reliance on CBDT4 Circular No. 495 dated September 22, 1987, have rightly held that the cumulative brought forward losses or unabsorbed depreciation should be considered for set off. In view of unambiguous language employed in the statute, no exception can be taken with ITAT's order confirming the CIT(A)'s order holding hat the assessee is entitled to claim set off. So far as the actual amount is concerned, the ITAT has remitted the matter to the Assessing Officer. However, on principle, the ITAT has rightly held that the assessee is entitled to claim set off." It was further argued that the Special Leave Petition (SLP) in Bangalore International Airport Ltd [2023] 154 taxmann.com 395 filed against the above decision by the Revenue stands dismissed by the Supreme Court. 9.0 The assessee has placed further reliance upon the decision of the Hon'ble Ko....
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.... Binani Industries (supra). It was argued that the Tribunal clearly prescribed that the lower of the loss brought forward or the unabsorbed depreciation do not vanish from the books of accounts unless wiped out by the profits in subsequent years. The Tribunal has held that for each year for the purposes of computation of book profits under section 115JB of the Act, the loss brought forward and the unabsorbed depreciation needs to be worked out as per books of account. It was suggested that the Hon'ble Delhi Tribunal in their decision in case of GO Airlines (India) Ltd [2021] 127 taxmann.com 803 has followed the decision of the Binani Industries (supra) issued by the Kolkata Tribunal and held that unless the entire loss as per books of account gets wiped out by profits earned in subsequent years, the said loss would continue to remain in the balance sheet of the assessee i.e. "books of accounts" and would be eligible for reduction in accordance with clause (iii) of Explanation 1 to Section 115JB of the Act, while computing book profits u/s. 115JB of the Act. 11.0 We have heard rival submissions in the light of material available on records. We have noted that in this case the iss....