Deduction u/s. 80ia available while calculating mat profit

Tax queries 1716 views 2 replies

Afroz

Artciled Assistant

24 Points Joined July 2009

If a company is availing deduction u/s. 80IA on profits derived from it's industrial undertaking, can it avail the same as a deduction while computing profits u/s. 115JB for the purpose of calculating tax as per MAT provisions?

Replies (2)

Devendra

Chartered Accountant

4780 Points Joined March 2009

Companies claiming deduction u/s 80IA are liable to MAT and the deduction u/s 80IA cannot be reduced while calculating the Book Profit under provisions of MAT .

Regards,

Devendra K

BASK and Co.

4 Points Joined November 2015

Dear Mr. Devender,

I hold a similar view but after so many years of your post and changes in law, need a bit more clarification if can help.

What does section 115JB(5) specifically denotes if deductions can't be claimed while computing the book profit. Reproduced for your convenience:

(5) Save as otherwise provided in this section, all other provisions of this Act shall apply to every assessee, being a company, mentioned in this section.

Also, would request you to throw some light on the below judgement

"Neha Home Builders Pvt. Ltd., ... vs Cit - 13, Mumbai on 22 January, 2018".

Will be really grateful for your valuable insights.

Thanks and Regards