The Tax Publishers2019 TaxPub(DT) 8428 (Kol-Trib) : (2020) 181 ITD 0446 : (2020) 207 TTJ 0300

INCOME TAX ACT, 1961

Section 115JB

Section 115JB is a stand alone provision which does not contain any provision about carry forward of brought forward losses, while computing the Book Profit under section 115JB . Since AO failed to take into account that restriction contained in section 72 on carrying forward unabsorbed business losses for more than 8 years, does not apply in computing the adjusted book profit under section 115JB. Therefore, AO was directed to allow the claim of assessee.

MAT - Computation of book profit - Allowability of deduction of unabsorbed business losses brought forward for more than 8 years -

Assessee-company claimed deduction of brought forward business losses relating to assessment years 1996-97, 1997-98 and 1998-99 while computing adjusted book profit of assessee for assessment year 2009-10. AO held that brought forward business losses could not be adjusted after 8 years in view of section 72.Held: Section 115JB is a stand-alone provision which does not contain any provision about carry forward of brought forward losses, while computing the Book Profit under section 115JB. Since AO failed to take into account that restriction contained in section 72 on carrying forward of unabsorbed business losses for more than 8 years, did not apply in computing the adjusted book profit under section 115JB. Therefore, AO was directed to allow the claim of assessee.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10 & 2013-14

INCOME TAX ACT, 1961

Section 115JB

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