B/F losses for making adjustment to book Profit U/s. 115JB means losses on last day of immediately preceding year

For the purposes of section 115JB of the Act, the term gloss brought forward’ can only mean losses on the last day of the immediately preceding year and no other meaning can be given to it. In the case of CIT Vs. Sumi Motherson Innovative Engineering Ltd. [2010-TIOL-756-HC-DEL-IT]’, the Delhi High Court (“NC”) held that the term ‘loss brought forward’ in clause (iii) provided in Explanation (1) to sub-section 2 of section 115JB of the Income-tax Act, 1961 (“the Act”) can only mean the loss on the last day of the immediately preceding year and eve...