GUJARAT PETROSYNTHESIS LTD Vs. CIT

JUDGEMENT

(1.) ASSESSEE has filed this appeal calling in question decision of the Income Tax Appellate Tribunal dated 15.2.2000. At the time of admission of appeal, following substantial questions of law were framed :

(2.) THOUGH three different questions have been framed,the issue is identical namely, with respect to assessee's claim for carrying forward unabsorbed depreciation/loss/ investment allowance to the extent of 30% of the book profit in case of assessment as made in section 115J of the Income Tax Act. We are not recording the facts in detail since it is pointed out to us by the counsel on both sides that issue is squarely covered by the Apex Court in decision in case of Karnataka Small Scale Industries Development Corporation Ltd. v. Commissioner of Income-tax reported in (2002) 258 ITR 770. In the said decision the Apex Court held that even where the book profit liability is imposed, the amounts of business loss, unabsorbed depreciation, investment allowance, etc. as at the beginning of the accounting year are to be adjusted and set off to the same extent of such brought forward loss, unabsorbed depreciation, etc., as they would have been adjusted or set off had the assessee been assessed to tax in the regular way and only the resultant amounts of loss, unabsorbed deprecation etc., can be carried forward to the next year.