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2022 (11) TMI 966 - AT - Income TaxMAT Computation of book profit u/s 115JB - Assessee was declared a sick company u/s 3 [1] [o] of the SICA - Whether company turning into positive net worth, the benefit of exemption of book profit tax should be provided to the assessee.? - HELD THAT:- Undisputedly, the net worth of the company has turned positive in the impugned assessment year. Naturally, therefore, for this year, assessee is not eligible for exclusion of its profit from the chargeability of book profit tax. There is no provision under the income tax act or under the sick industrial Companies act to exclude such profit from book profit tax u/s 115 JB of the act in these circumstances. Learned lower authorities have correctly interpreted the law and denied benefit to the assessee. Whenever, the provisions of law are clear and unambiguous they should be given full effect thereof and should be read as it is without adding or subtracting anything. No infirmity in the orders of the lower authorities. AO is correct in not excluding the book profit earned by the assessee from the provisions of 115 JB of the income tax act as the assessee’s net worth turned positive during the year. There is no infirmity in the order of the learned CIT – A in confirming the same. Solitary ground of appeal of the assessee is dismissed.
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