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2016 (7) TMI 1210 - HC - Income TaxMAT - computation of the book profit under explanation to section 115JA - addition made on account of lease equalization charges - in the nature of reserve or not - Held that:- The lease equalization fund is not in the nature of a reserve - the lease equalization charge would not fall within the ambit of clause (b) of the Explanation to sub-section (2) of section 115JA of the Act. Under the circumstances, while computing the book profit under section 115JA of the Act, the question of increasing the net profit by the amount of lease equalization charge would not arise, the same being not in the nature of a reserve. - Decided against the revenue.
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