|The Tax Publishers2020 TaxPub(DT) 5187 (Bang-Trib)
INCOME TAX ACT, 1961
Assessee would not be liable to pay tax under section 115JB by virtue of the position that no tax was payable under the normal provisions of the Act.
MAT - Applicability of provisions of section 115JB - Assessee's total income being 'NIL' -
Assessee-company carrying on business of generation and selling of power filed 'NIL' return of income under normal provisions of Act. It also claimed that provisions of section 115JB were not applicable to it as there was no tax payable on the income as per regular computation of income under the Act. However, the AO while completing the assessment proceedings, invoked provisions of section 115JB and subjected the income as shown in the P&L account as book profit assessable in terms of section 115JB. Held: When tax is payable on the total income computed under the normal provisions of the Act, then section 115JB would be attracted, but it would not be attracted when the tax payable on the total income is 'NIL' either because the total income is nil or is a negative figure. Accordingly, in instant case, the assessee was not liable to pay tax under section 115JB by virtue of the position that no tax was payable under the normal provisions of the Act.
FAVOUR : In assessee's favour.
IN THE ITAT, BANGALORE BENCH
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