- (1.) The Income Tax Appellate Tribunal, New Delhi, has referred the following question of law under Section 256(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for opinion of this Court: Whether, on the facts and in the circumstances of the case, the ITAT was justified in holding that for the purpose of Section 115J(1A)(iv) the word loss in terms of proviso to Section 205(1)(b) of Companies Act will mean the loss including depreciation
(2.) The present reference relates to the assessment year 1990-91.
(3.) Briefly stated the facts giving rise to the present reference are as follows: The assessee-company (hereinafter referred to as assessee) filed return of income showing loss of Rs. 9,66,250. As per profit and loss account filed along with return, the net profit of Rs. 2,06,837 was shown excluding the depreciation of Rs. 2,76,963 debited to the profit and loss account. The assessing officer during the course of assessment proceedings found that in view of the book profit, the assessee-company was liable for tax as per provision contained under Section 115J of the Income Tax Act, 1961. While applying the proviso of Section 115J of the Act, the assessing officer gave working of book profit in the assessment order wherein the deduction for depreciation losses calculated for the assessment years 1987-88 to 1989-90 were not allowed because of the fact that the business loss was nil, as provided under Section 205 of the Companies Act.;