INCOME TAX ACT, 1961

Section 115JB

MAT - Book profit under section 115JB - Disallowance under section 14A -

AO while calculating book profit under section 115JB had taken into consideration disallowance made with the aid of section 14A of the Act read with rule 8D of the Income Tax Rules. Held: Computation for the purpose of clause (f) of Explanation 1 to section 115JB(2) is to be made without resorting to the computation as contemplated under section 14A read with rule 8D. AO was, therefore, directed not to make adjustments in book profit for purpose of MAT liability on the basis of calculations made with rule 8D.

Followed:Asstt. CIT, Circle 17 (1), New Delhi v. Vireet Investment (P.) Ltd. (2017) 58 ITR (Del-Trib) 313) : 2017 TaxPub(DT) 1760 (Del-Trib),

REFERRED :

FAVOUR : In favour of assessee.

A.Y. :

SUBSCRIBE FOR FULL CONTENT