Surana Steels (P.) Ltd. v. Dy. CIT

The Dhamra Port Company Limited, Odisha vs. DCIT, Circle 1(2), Bhubaneswar, Aayakar Bhawan, Rajaswa Vihar, Orissa

In the result, appeal of the assessee is allowed with the direction

…e interpretation of term 'loss' in clause (iv) of the Explanation as to whether the loss should be considered as before or after taking into account the amount of depreciation. The Hon'ble Supreme Court in the case of Surana Steels (P.) Ltd. v. Dy. CIT [1999] 237 ITR 7771 held that the term 'loss' occurring in clause (b) of first proviso to section 205(1) of Companies Act has to be read as amount arrived at after taking into account the depreciation and accordingly the same was to be read and understood in the context of section 115J also. Resultantly the term "loss" was understood as the amount arrived at after…