Recently, the Bangalore Income Tax Appellate Tribunal held that where an item of income or expenditure was correctly disclosed in the P&L account as per the Companies Act, any disclosure in the Notes to Accounts in this regard could not be a basis for adjusting book profits for the purpose of Section 115JB of the Income-tax Act. The profit in the P&L account was not open to tinkering by the assessing officer or the assessee while computing book profit under Section 115JB.
Tuesday 17 November 2015
Capital receipt credited to P&L account is part of book profit for MAT purposes
Recently, the Bangalore Income Tax Appellate Tribunal held that where an item of income or expenditure was correctly disclosed in the P&L account as per the Companies Act, any disclosure in the Notes to Accounts in this regard could not be a basis for adjusting book profits for the purpose of Section 115JB of the Income-tax Act. The profit in the P&L account was not open to tinkering by the assessing officer or the assessee while computing book profit under Section 115JB.
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