The assessee-company claimed exclusion of its profits from book profits under section 115JB on the strength of the rehabilitation scheme sanctioned by the BIFR. The Tribunal held that the exemption under Explanation 1(vii) to section 115JB is available only till the assessment year in which the net worth of the sick company remains below the accumulated losses. Since the assessee’s net worth had become positive on 31-03-2009 and it was discharged from the purview of SICA\/BIFR on that basis, the profits of A.Y. 2012-13 could not be excluded while computing book profits. The BIFR directions merely required the Department to consider continuation of the exemption and did not override the statutory provisions of section 115JB. (AY. 2012-13.)\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 115JB: Company-Book Profit-Sick Industrial Company-Exemption under Explanation 1(vii)-Net worth becoming positive-BIFR Scheme-The BIFR directions merely required the Department to consider continuation of the exemption and did not override the statutory provisions of section 115JB-Exemption not available. [Sick Industrial Companies (Special Provisions) Act, 1985,(SICA), S. 32]<\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62297","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gcN","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62297","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=62297"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62297\/revisions"}],"predecessor-version":[{"id":62298,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62297\/revisions\/62298"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}