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2010 (8) TMI 398 - AT - Income TaxMinimum Alternate Tax (MAT) - Section 115J - two sets of books of account - one for AGM and other under companies act - whether the book profit should be computed with respect to profit declared in the profit and loss account prepared for the purpose of AGM or the profit and loss account prepared under the Companies Act. - Held that: it was open to the assessee to compute the book profit either on the basis of profit and loss account prepared under the provisions of Part II and Part III of Schedule VI of the Companies Act or as per the annual accounts placed before the AGM. Subsequently amendment was made and sub-section (1A) was introduced from assessment year 1990-91 as per which accounts for the purpose of book profit has to be prepared as per Part II and Part III of the Schedule VI of the Companies Act. - stand taken by the assessee upheld. Levy of penalty u/s 271(1)(c) - the book profit had been rightly computed by the assessee with respect to profit and loss account prepared as per Part II and Part III of the Schedule VI of the Companies Act and on that basis there is no income assessable on the basis of book profit. In view of this decision the penalty levied by the Assessing Officer cannot survive and the same had been rightly deleted by the CIT(A). - Decided in favor of assessee.
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