- (1.) THE Tribunal, New Delhi has referred to following question of law under s. 256(2) of the IT 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 Tribunal was justified in holding that for the purpose of s. 115J(1A)(iv) the word 'loss' in terms of proviso to s. 205(1)(b) of Companies Act will mean the loss including depreciation -
(2.) THE present reference relates to the asst. yr. 1990 -91.
(3.) BRIEFLY stated the facts giving rise to the present reference are as follows : On the facts, the assessee company (hereinafter referred to as "assessee") filed return of income showing loss of Rs. 9,66,250. As per P&L a/c 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 P&L a/c. The AO 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 s. 115J of the IT Act, 1961. While applying the proviso of s. 115J of the Act, the AO gave working of book profit in the assessment order wherein the deduction for depreciation losses calculated for the asst. yrs. 1987 -88 to 1989 -90 were not allowed because of the fact that the business loss was nil, as provided under s. 205 of the Companies Act. Aggrieved with the above computation of book profit, the assessee went in appeal before the learned CIT(A) who vide;