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2010 (2) TMI 8 - SC - Income TaxMAT Minimum Alternate Tax Section 115 While completing the assessment of income, the Assessing Officer re-computed the book profit for the purpose of Section 115J of the Income Tax Act, 1961, [Act, for short], after allowing depreciation as per Schedule XIV to the Companies Act. - The rates of depreciation specified in Schedule XIV to the Companies Act, 1956 [1956 Act, for short] were lower than the rates specified under Rule 5 of the Rules - CIT(A) directed the AO to allow the claim of depreciation as per the Income Tax Rules, 1962, for the purposes of computing the book profit under Section 115J of the Income Tax Act, 1961 ITAT confirmed the order of CIT(A) held that - If a Company is a MAT Company, then be it a private limited company or a public limited company, for the purposes of Section 115J of the Act, the assessee-Company has to prepare its profit and loss account in accordance with Parts II and III of Schedule VI to 1956 Act alone - The reason being that rates of depreciation in Rule 5 of the Income Tax Rules, 1962, are different from the rates specified in Schedule XIV of 1956 Act. In fact, by the Companies (Amendment) Act, 1988, the linkage between the two has been expressly de-linked. Hence, what is incorporated in Section 115J is only Schedule VI and not Section 205 or Section 350 or Section 355 Decision in the matter of CIT vs. Malayala Manorama Company Limited, reported in [2008 -TMI - 3612 - SUPREME COURT] was wrong matter placed before larger bench
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