AAK South East India Private Limited Vs. DCIT, Circle-1(1) Hyderabad

Parties Involved

Facts Summary

The assessee, AAK South East India Private Limited, while filing the return of income for the Assessment Year 2018-19, failed to claim unabsorbed depreciation of Rs.26,01,14,355/- and brought forward business losses of Rs.155,05,24,343/- in the appropriate columns of the return. Due to this omission, the Commissioner of Income Tax (Appeals) did not allow the unabsorbed depreciation for the purpose of section 115JB of the Income Tax Act, 1961. The assessee filed a grievance petition and an application under section 154 of the Act, but the grievance was not redressed. The assessee then appealed to the Commissioner of Income Tax (Appeals) to allow the unabsorbed depreciation for the purpose of arriving at the book profit under section 115JB of the Act. The Commissioner dismissed the appeal, stating that accepting the request would result in reducing the income less than the return of income, which is not permissible in an appeal.…

Legal Issues

• 1. Whether the unabsorbed depreciation should be allowed for the purpose of arriving at the book profit under section 115JB of the Act?

Judgment Outcome

Decided in favour of Assessee.

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