New User / Register | Bookmarks | Annual Subscription | Feedback |
Login: Stay
| Forget Password |
           
TMI - Tax Management India. Com  

Recent Discussionss:

Capital goods rejection Sir , can we take cenvat credit of 2008 year invoice in 2014 year in the month of August. Consingee: China, Buyer: India Sending of defective parts of capital goods to the foreign supplier for repair and return and availing of cenvat credit there on. Previous period availment of cenvat credit Proof of Export Reversal of Cenvat Credit supply made under Notification N.33/2012-CE dated 09.07.2012 against SHIS DUTY CREDIT SCRIP Cenvat credit on returned goods after 6 months. time period for submit of proof of export Haryana VAT
 
Discussions Forum
Home Forum Income Tax Month 7 2011 2011 (7) This
← Previous Next →
 

addition of disallowance u/s 14A in the book profit for computing income under MAT - Income Tax

 
Issue Id: - 3217
Dated: -25-07-2011
By:- Lalit Kishore
addition of disallowance u/s 14A in the book profit for computing income under MAT

While completing the assessment for A/Y 2008-09, the assessing officer made addition to the income u/s 14A, however the income under MAT was higher than the regular income hence the tax was calculated as per the provisions of section 115JB. However, whiile computing the tax on book profit, the book profit was increased by the disallowance u/s 14A. Is the action on part of AO correct as this was a disallowance after assessment and not as per books.

Post Reply
 
Previous Posts
 


Dated: - 25-07-2011
By: - CA Rachit Agarwal

With reference to disallowance u/s14A, the amount of MAT credit will get reduced due to the increase of income tax payable under the Income Tax Act, 1961.

MAT is payable on the book profit as disclosed while considering the preparation of Accounts based on the Schedule VI of the Companies Act, 1956.

Reference can be give for Appolo Tyres Limited




Dated: - 26-07-2011
By: - Vineet Agrawal

The provisions of section 14A are limited for the purposes of computation of income under chapter IV of the Act and the same cannnot be extended to MAT provisions u/s 115JB which is a self conmtained code. Section 115JB provides for increase of Book Profit by expenses relatable to exempt income, but there is no scope for importing disallowance made under section 14A rw rule 8D. It has to be seperate exercise considering the sources of income providing stream of exempt income. It is pointed out that Long Term Capital Gain from transfer of shares (STT paid) which is otherwise exempt is chargeable to MAT. Hence any expense related to such investment cannot be added back for MAT.


 
 
Previous Next

 

what is new what is new

UpdatesKnowledge SharingSubscription CommunicationNewslettersMore Options




Go to Mobile Website Go To Top
© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.