Dismissing the appeal, the Tribunal held that\u00a0 th clause (vii) of Explanation 1 to section\u00a0115JB\u00a0of the Act provides for exclusion from book profits of the profits of a sick industrial company from the assessment year in which the company becomes a sick company and ending with the assessment year during which the entire net worth of such company becomes equal to or exceeds the accumulated losses. The net worth of the assessee-company had turned positive in the assessment year in question. Therefore, for this year, the assessee was not eligible for exclusion of its profits from the chargeability of book profits tax. Whenever the provisions of law are clear and unambiguous they should be given full effect and should be read as they are without adding or subtracting anything.\u00a0 The Assessing Officer was correct in not excluding the book profits earned by the assessee from the provisions of section\u00a0115JB\u00a0 of the Act. Order of CIT(A) is affirmed. (AY.2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 115JB : Book profit-Sick Industrial Company-Net worth of assessee-company turning positive in assessment year in question Not eligible for exclusion of profits from chargeability of book profits tax-Even though time-frame of rehabilitation scheme not completed [S. 115JB, Exppln.1(vii), Sick Industrial Companies (Special Provisions) Act, 1985, S. 3(1)(o)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-36623","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9wH","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=36623"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36623\/revisions"}],"predecessor-version":[{"id":36624,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/36623\/revisions\/36624"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=36623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=36623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=36623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}