The Tax Publishers2020 TaxPub(DT) 3881 (Mum-Trib) : (2020) 207 TTJ 0932

INCOME TAX ACT, 1961

Section 115JB(2)

Transfer pricing adjustment was not one of the classes of adjustments provided in Explanation 1 of section 115JB(2), same could not be added while computing book profit of assessee-company.

MAT - Computation of book profit - AO made addition of transfer pricing adjustment -

AO while computing book profit of assessee-company made addition of transfer pricing adjustment. Held: Book profits for the purposes of section 115JB could not be adjusted, except as provided in Explanation 1 of section 115JB(2), and transfer pricing adjustment was not one of the classes of adjustments provided in that explanation. Accordingly, no addition could be sustained.

Followed:National Thermal Power Co. Ltd. v. CIT on 4-12-1996 : (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC) and Appollo Tyres (2002) 255 ITR 273 (SC) : 2002 TaxPub(DT) 1371 (SC).

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INCOME TAX ACT, 1961

Section 92C

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