mat
This query is : Resolved
10 November 2009
mat is applicable on capital gains included in book even if same is not liable to be taxed
10 November 2009
Yes
SUMMARY OF CASE LAW
The long term capital gain included in the net profit prepared under the Companies Act is not deductible from the net profit for the purpose of computing book profit u/s115JB; merely because the long term capital gain is not liable to be taxed under the normal provision of the Act for the reason that the assessee has made investment in specified schemes as contemplated u/s 54EC, it is not correct to say that it is also to be reduced from the net profit for the purpose of computing deduction u/s 115JB when the Explanation to section 115JB does not provide for any deduction in terms of section 54EC meaning thereby that section 54EC has no application in the computation of book profit u/s 115JB.
CASE LAW DETAILS
Decided by: ITAT, DELHI BENCH `I’: NEW DELHI, In The case of: Growth Avenue Securities Pvt. Ltd. v. DCIT, Appeal No.: ITA No. 3912/Del/2005, Decided on: May 22, 2009
SUMMARY OF CASE LAW
The long term capital gain included in the net profit prepared under the Companies Act is not deductible from the net profit for the purpose of computing book profit u/s115JB; merely because the long term capital gain is not liable to be taxed under the normal provision of the Act for the reason that the assessee has made investment in specified schemes as contemplated u/s 54EC, it is not correct to say that it is also to be reduced from the net profit for the purpose of computing deduction u/s 115JB when the Explanation to section 115JB does not provide for any deduction in terms of section 54EC meaning thereby that section 54EC has no application in the computation of book profit u/s 115JB.
CASE LAW DETAILS
Decided by: ITAT, DELHI BENCH `I’: NEW DELHI, In The case of: Growth Avenue Securities Pvt. Ltd. v. DCIT, Appeal No.: ITA No. 3912/Del/2005, Decided on: May 22, 2009
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