Section 14A

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Bhavesh Mehta (Querist)

23 November 2009 Kindly guide me whether the disallowance u/s 14A be added to tax amount calculated by Minimum Alterante Tax u/s 115JB? also kindly give reference to any case law or any notification in this relation..

CA. Rishabh Mittal

CA. Rishabh Mittal (Expert)

23 November 2009 Please elaborate your query . . How can be an amount being part of income (i.e. disallowance of income u/s 14A) can be added to tax amount ?

shakuntala chhangani

shakuntala chhangani (Expert)

23 November 2009 Hi Bhavesh, when we calculate BOOK PROFITS u/s 115JB, we only consider profit and loss A/c of the co. prepared as per Part II nad III of Schedule VI to cos. Act. the Accounting policies, the AS adopted for preparing such accounts and the methods and rates adopted for calculating dep. shall be the same as have been adopted for the purpose of preparing such accounts and laid before the co. at its AGM. It is subject to only 17 adjustments (9 plus and 8 minus) mentioned u/s 115JB. This calculation purely depends upon book profits and has nothing to do with allowance or disallowance under any provision of IT (eg 43B disallowance). Regards,
CA Shakuntala Chhangani

Bhavesh Mehta

Bhavesh Mehta (Querist)

25 November 2009 thank you members..

Bhavesh Mehta

Bhavesh Mehta (Querist)

09 December 2009 Respected members

I would like to redraft my question .
Whether Disallowance u/s 14A, calculated as per Rule 8D, be added while calculating Book Profit U/s 115JB