ITAT adjudicated a dispute concerning book profit computation ...

Corporate Social Responsibility Expenses Upheld as Valid Computation Method for Book Profits Under Section 115JB

May 20, 2025

Case Laws Income Tax AT

ITAT adjudicated a dispute concerning book profit computation under section 115JB, specifically addressing CSR expenditure's treatment in profit and loss account. The tribunal determined that CBDT circular does not mandate exclusion of CSR expenses from book profit calculation. The AO lacks authority to recompute book profits beyond expressly prescribed statutory adjustments. Relying on precedents from SC and HC, the tribunal affirmed that book profits must be determined based on accounts prepared per Companies Act and accounting principles. The tribunal ruled against revenue, upholding the assessee's computation methodology and rejecting revenue's attempt to modify book profit calculations.

View Source

← Previous Next →

ITAT adjudicated a dispute concerning book profit computation ...

Corporate Social Responsibility Expenses Upheld as Valid Computation Method for Book Profits Under Section 115JB

May 20, 2025

Case Laws Income Tax AT

You may also like:

Disallowance on account of expenses incurred on corporate social responsibility - Both the lower authorities have disallowed the expenses only on the ground that...

COVID-19 related Frequently Asked Questions (FAQs) on Corporate Social Responsibility (CSR) - Circular

Extension of Tenure of High Level Committee on Corporate Social Responsibility - 2018

CSR Policy - Rule 6 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 - as amended.

Companies (Corporate Social Responsibility Policy) Amendment Rules, 2018

Companies (Corporate Social Responsibility Policy) Amendment Rules, 2016 - Notification

Claim on corporate social responsibility – Expenses incurred wholly and exclusively for the purpose of business - upliftment of the Adivasis in the locality - claim...

Validity of order in original and Demand of GST - These issues included discrepancies in GST returns, imposition of cess, treatment of scrips, and taxation of corporate...

Corporate Social Responsibility - where a company is not required to appoint an independent director under sub-section (4) of section 149, it shall have in its Corporate...

The High Court's decision addressed several key issues regarding the assessee's tax assessment. Firstly, it upheld the Tribunal's finding that the royalty paid by the...

Corporate Social Responsibility (CSR) expenses - Allowable business expenses u/s 37 - it is clearly seen that there is an obligation on the respondent/assessee to fulfil...

Disallowance of business expenses as Corporate Social Responsibility (CSR) expenses - The expenses to section 37 (1) was inserted w.e.f. 1st April, 2015 and cannot be...

Rejection of books of account - Correct method of accounting - following cash system of accounting instead of accrual method of accounting - He has not cared to discuss...

CSR expenses claimed u/s 37(1) were disallowed as the assessee-company failed to prove how expenses like building classrooms, toilets, installing LED lights or planting...

Disallowance of Corporate Social Responsibility (CSR) and Sustainable Development (SD) expenses. Following the precedents established in the assessee's own cases and the...

Quick Updates: