Calculation of book profit u/s.115JB of the Income Tax Act

This Income Tax Appellate Tribunal ruling concerns the calculation of book profit under Section 115JB for Go Airlines (India) Ltd. for the assessment year 2015-16. The assessee argued that unabsorbed depreciation should be adjusted, a point previously decided in their favour by a co-ordinate bench. The Tribunal agreed, setting aside the CIT(A)'s order and directing the AO to allow the deduction and recompute the book profit accordingly.

IN THE INCOME TAX APPELLATE TRIBUNAL,
MUMBAI BENCH “G”, MUMBAI
BEFORE SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND
SHRI RAVISH SOOD, JUDICIAL MEMBER
ITA No.7517/M/2019
Assessment Year: 2015-16

M/s. Go Airlines (India)
Ltd.,
C-1, 1st Floor,
Wadia International
Centre,
Pandurang Budhkar
Marg,
Worli,
Mumbai – 400 025
PAN: AACCG 2599K

(Appellant)

Vs

Deputy Commissioner of
Income Tax-5(1)(1),
Room No.568, 5th Floor,
Aayakar Bhavan,
M.K. Road,
Mumbai - 400020

(Respondent)

Present for:
Assessee by : Shri Ronak Doshi, A.R.
Revenue by : Shri Yogesh Kamat, D.R.
Date of Hearing : 15.07.2021
Date of Pronouncement : 26.07.2021
O R D E R

The present appeal has been preferred by the assessee against the order dated 26.09.2019 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)]vrelevant to assessment year 2015-16.

2. The only issue raised in the grounds of appeal by the assessee is against the order of Ld. CIT(A) upholding the order of AO wherein the AO has denied the adjustment of book profit of unabsorbed depreciation amounting to Rs.17,09,18,048/-.

3.The Ld. Counsel of the assessee, at the outset, submitted that the issue is squarely covered in favour of the assessee by the decision of the co-ordinate bench of the Tribunal in assessee’s own case in ITA No.3788/M/2018 A.Y. 2014-15 vide order dated 13.01.2021. The Ld. A.R. prayed before the Bench that since the issue has been settled in favour of the assessee by the decision of the co-ordinate bench of the Tribunal, the issue in the current year may kindly be allowed following the said decision of the co-ordinate bench of the Tribunal.

4. In view of the above, we are inclined to set aside the order of Ld. CIT(A) and direct the AO to grant the deduction of unabsorbed depreciation and recompute the book profit under section 115JB of the Act accordingly.

5. In the result, the appeal of the assessee is allowed.

Order pronounced in the open court on 26.07.2021.
 

Please find attached the enclosed file for the full judgement