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| The Tax Publishers2019 TaxPub(DT) 1276 (Mum-Trib) INCOME TAX ACT, 1961
Section 115JB
Since assessee had not routed benefit got out of one-time settlement of loan from banks through P&L Account, AO had rightly made addition to book profit computed under section 115JB in respect of addition made under section 41(1) as assessee's accounts were not in accordance with section 211(c) of Companies Act, 1956.
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MAT - Computation of book profit - Treatment of addition made under section 41(1) -
AO noticed that assessee had not routed benefit got out of onetime settlement of loan from banks through P&L Account. Accordingly, AO made addition under section 41(1) and the same was added back to book profit computed under section 115JB. Assessee contended that book profit computed under section 115JB could not be altered except as provided in Explanation 1 to section 115JB. Held: The fact remains that assessee had not prepared its account in accordance with Parts II and III of Sch. VI to Companies Act and such accounts were not in accordance with the provisions of section 211(c) of Companies Act, 1956. In such case, AO had every right to make adjustment towards book profit computed under section 115JB. Since assessee had not routed benefit got out of onetime settlement of loan from banks through P&L Account, AO had rightly made addition to book profit computed under section 115JB in respect of addition made under section 41(1).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 72
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