INCOME TAX ACT, 1961

MAT - BOOK PROFIT UNDER SECTION 115JA -Computation -Capital gain

Held: Receipt that not in the nature of income, could not be taxed as income under section 115JA. Income exempt under section 50 would remain exempted under section 115JA(4), therefore, capital gain arose to an assessee under section 50 on a depreciable asset was liable to be excluded from calculation of deemed profits under section 115JA.

Income-tax Act, 1961, Section 115JA

A.Y. :1998-99
Decision: In favour of assessee.

Case Law Analysis:Indo Marine Agencies (Kerala) (P.) Ltd. v. Asstt. CIT [1995] 51 TTJ (Coch.) 18 (para 3.2), CIT v. Veekaylal Investment Co. (P.) Ltd. [2001] 249 ITR 597/ 116 Taxman 104 (Bom.) (para 3.2) and Rolta India Ltd. v. Joint CIT [IT Appeal No. 20 (Mum.) of 2001] (para 3.2).