1.  COMMISSIONER OF INCOME TAX  Vs. SHRI PREM GANDHI, IT(SS)A.No. 267/Del/2002, Block Period : 1990-91 to 2000-01, Dated: May 5, 2011 HIGH COURT OF DELHI

Held that in view of the amendment to Section 132(1) of the Income Tax Act which has retrospective effect from 1.6.1994, Additional Director of Income Tax (Investigation) is duly authorized to issue warrants of search.

Further held that notice under Section 143(2) was not served has not been taken by inadvertence though it was taken before the CIT(A) and the assessee should be allowed to make such a request before the ITAT and it will be for the ITAT to decide as to whether this plea is to be allowed or not.

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2.  M/s SUSI SEA FOODS PVT LTD Vs. ASST COMMISSIONER OF INCOME TAX, ITA No.280/Vizag/2010, Assessment Year: 2000-2001, Dated: May 9, 2011  ITAT - VISAKHAPATNAM

Whether AO cannot apply sections 70 to 79 of the Income tax Act while computing the amount deductible under clause (iii) for the purpose of book profit as it nowhere prescribes the manner of set off or modalities of carry forward and set off of loss to be followed for book purposes, even though there is no method of computation of brought forward losses and unabsorbed depreciation and its set off is given under the Companies Act.

The provisions of sec. 115JA are a complete code by itself and it, subject to sub. sec. (4), over rides all other provisions of the Income tax for the matters provided in that section. Under the companies Act, for accounting purposes, the loss of any year is not segregated into “Business loss” and “Depreciation loss”. Only under the Income tax Act, the loss computed under the head “Profits and Gains of Business” is segregated into “Business Loss” and “Depreciation Loss”. Since it is specifically provided in section 115JA that the loss shall not include depreciation, it becomes necessary to bifurcate the brought forward loss as per books of account into “Unabsorbed business loss” and “Unabsorbed depreciation”; The Income tax Act no where prescribes the manner of set off or modalities of carry forward and set off of loss to be followed for book purposes. Hence sub. sec (4) of sec. 115JA cannot have application for the said purpose;it would not be correct on the part of the AO to apply the principles prescribed in sec. 70 – 79 of the Act for accumulated losses shown in the books of account.

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