Book profit u/s 115jb

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vipin sanghi (Querist)
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20 April 2012 While arriving at Net Profit of the company, rental income from house property has also been credited to the Profit & Loss A/c. Now, in the calculation of book profit u/s 115JB, can such rental income be deducted from the net profit?

CA Kishore Tallam

CA Kishore Tallam (Expert)
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20 April 2012 No. No adjustments shall be carried out to the book profit except the adjustments specified in that section. The said adjustment cannot be made to book profit.

vipin sanghi

vipin sanghi (Querist)
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21 April 2012 sir,
I would like to present my query in detail.
The company got a demand order from the income tax deptt. in which tax u/s 115JB has been levied as higher than the tax on normal rates.(Book Profit includes Income from House Proerty)
During the year, the co. had a house property rental income of Rs. 1511367 and credited to P&L A/c and after expenses except depriciation on said house property ,accounting profit comes to Rs.895953. while computing tax, such rent income was taxable under the head House property and net profit as shown under the head Business/Profession was deducted by such amount and Rs. 615414 was claimed as loss.
Now, is there any way to reduce the tax liability of the company?

CA CKP

CA CKP (Expert)
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21 April 2012 No. There is no other way to reduce the company's tax liability as the BP u/s 115JB have calculate as per the provision of the said section, according sec 115JB rental income debited to PL A/c is not deductible while calculating BP.

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