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Income Tax - Highlights / Catch Notes

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MAT computation - re-computation of book profit u/s 115JB - ...

Income Tax

February 2, 2019

MAT computation - re-computation of book profit u/s 115JB - since the assessee has not routed the benefit got out of onetime settlement of loan from the banks through P&L Account, the AO has rightly made addition to book profit computed u/s 115JB in respect of addition made u/s 41(1) of the Act.

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  2. MAT u/s 115JB - assessee is entitled to reduce an amount on account of withdrawal from the provision for ESOP from the taxable book profit in the working of MAT - AT

  3. MAT computation - assessee’s interest income and profit on sale of Mutual Funds would not form part of the computation of ‘book profits’ u/s 115JB - AT

  4. Adding back transfer pricing adjustment to income assessed u/s 115JB (MAT) - AO erred in adding back the transfer pricing adjustment of the book profits u/s 115JB - AT

  5. MAT - Addition of Book Profits u/s 115JB – Dividend Stripping u/s 94(7) - The Explanation (f) of Section 115JB was clearly applicable in case of the appellant - AT

  6. Minimum Alternate Tax (MAT) u/s 115JB - interpretation - reduction of exempted income u/s 80-IB from book profit u/s 115JB - not allowed - HC

  7. Minimum alternate tax (MAT) - profit from sale of agricultural land, which is not a “Capital Asset”, cannot be included for the purpose of computing book profit u/s 115JB - AT

  8. While computing MAT u/s 115JB, dividend tax paid should not be reduced from the book profit of the assessee company - AT

  9. Minimum alternate Tax (MAT) - donation paid is allowable expenditure while computing the book profit of the assessee u/s 115JB - AT

  10. MAT applicability to the assessee Banking Companies u/s 115JB - the provisions of Section 115JB(2) of the Act do not apply to the Banking companies.

 

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