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| The Tax Publishers2019 TaxPub(DT) 8302 (Kol-Trib) INCOME TAX ACT, 1961
Section 14 Section 115JB
Reserve for unexpired risk does not fall in the category of those reserves which have been specified in Expln. 1(b) to section 115JB(2). Therefore, reserve for unexpired risk in case of a General Insurance business, should not have been added back for purpose of computation of book profit under section 115JB(2) for MAT purposes.
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MAT - Computation of book profit - Treatment of reserve for unexpired risk created by general insurance company -
Assessee, an insurance company created reserve for unexpired risk, AO made addition of said reserve while computing book profit of assessee-company under section 115JB.Held: Reserve for unexpired risk does not fall in the category of those reserves which have been specified in Expln. 1(b) to section 115JB(2). Therefore, this reserve, viz., the reserve for unexpired risk in case of a General Insurance business, should not have been added back for purpose of computation of book profit under section 115JB(2) for MAT purposes.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
INCOME TAX ACT, 1961
Section 115JB
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