Constitutional validity of MAT provisions relating to set-off of lower of unabsorbed brought forward business loss and unabsorbed depreciation

It was held that clause (iii) of Explanation 1 to section 115JB of the Income-tax Act, 1961 (“the Act”) cannot be said to be discriminatory and hence unconstitutional. This clause relates to set-off of unabsorbed business loss or unabsorbed depreciation, whichever is lower. The HC also held that the approach of reading down a provision by modifying the language of a statute to achieve the intention of the legislature, cannot apply to such a provision. Facts • The assessee, a private company incorporated in Scotland, U.K., was engaged in the business of prospecting, drilling, expl...