Dalveer Bhandari, J. - (1.) These appeals are directed against the judg ment passed by a Division Bench of the Kerala High Court at Ernakulam on 13th November, 2001 whereby the High Court has decided Income Tax Reference Nos. 245, 259, 289 and 293 of 1999 by a common judgment.
(2.) The main question which arose for consideration before the Court below was : "Whether in respect of a company consistently charging depreciation in its books of account at the rates prescribed in the Income-tax Rules, the Income Tax Officer has jurisdiction under section 115-J of the Income-tax Act, 1961 to rework net prof its by substituting the rates prescribed in Schedule XIV of the Companies Act, 1956 -
(3.) The concept of a minimum tax on zero tax companies was introduced under section 80VVA of the Income-tax Act, 1961 (hereinafter referred to as "the 1961 Act") when a ceiling was placed on allowances by the Finance Act, 1983 with effect from the Assessment Year 1984-85. However, the allowances unabsorbed, because of the restriction imposed by the ceiling, were carried forward, so that they could be absorbed in a later year, if adequate profits are available. Section 80VVA was dropped from the statute by the Finance Act, 1987, with effect from A.Y. 1988-89, when replaced Book Profits Tax by section 115-J of the 1961 Act. But it was materially different in one respect that no part of the tax on book profits could be adjusted against tax on regular assessment at a future date. 3A. It may be pertinent to mention that the Book Profit Tax was abandoned with effect from A.Y. 1990-91 by the Finance Act, 1990. It was re-introduced with a new name Minimum Alternate Tax with effect from A.Y. 1997-98 under section 115-JA. ;