The Tribunal permitted the assessee for set-off of amount of the lower of loss or depreciation, pertaining to A.Y. 2010-11 as per books of accounts and allowed the deduction of the amount credited to Profit & Loss Account of AY. 2011-12 on account of waiver of loans and other payables and also disregarded the reduction made in the accumulated debit balance of Profit & Loss Account through the Restructuring Account. The Tribunal held that the debit balance of Profit & Loss A/c., through absorbed and wiped off in books, now positive was deemed to have survived for set-off in a later year in computing book profit. The matter is remanded to the CIT(A) on a short point that the aspect of the adjustments had not been delved upon. ( ITA No. 2709 & 4696/M/2019 and ITA No. 2710 & 4697/M/2019 dt 28 -05 -2020) (AY. 2013-14 , 2014-2015)
Windsor Machine Ltd v .DCIT ( 2020 ) 185 ITD 576/ 81 ITR 41 /(2021) 199 DTR 79 ( Mum) (Trib)
S. 115JB : Book profit – Waiver of loan -Loss or depreciation – Reduction of lower of loss or depreciation of the past years is allowable even where the same did not appear in the books of the current years on being absorbed against the credits not otherwise liable to tax in the past years- Matter remanded to CIT(A) for on a short point that the aspect of the adjustments had not been delved upon. . [ S.32 , 72 ]