09 July 2008
No. Explanation 1 to Sec 115JB,which provides an exhaustive list of adjustments to be made in profit / loss as per P&L account to arrive at the figure of Book Profits (as a percentage of which which MAT is calculated), clearly nullifies the effect of such income & related expenditure(i.e., u/s 10). Therefore, MAT is not applicable on assesses whose income is exempt u/s 10(1).
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