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| The Tax Publishers2020 TaxPub(DT) 0429 (Kol-Trib) INCOME TAX ACT, 1961
Section 115JB
DRR was neither reserve nor unascertained provision so to attract addition under clause (b) or clause (i) of Expln. 1 to section 115JB(2), accordingly, addition of amount transferred to debenture redemption reserve (DTT) in computing book profits was not justified.
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MAT - Computation of book profit - AO made addition of amount transferred to debenture redemption reserve (DRR) -
AO while computing book profit of assessee-company made addition of amount transferred to debenture redemption reserve (DRR).Held: DRR was neither reserve nor unascertained provision so to attract addition under clause (b) or clause (i) of Expln. 1 to section 115JB(2), accordingly, addition of amount transferred to debenture redemption reserve (DTT) in computing book profits was not justified.
Relied:National Ravon Corporation Ltd. v. CIT (1997) 227 ITR 764 (SC) : 1997 TaxPub(DT) 1323 (SC).
REFERRED : IOL Ltd. v. DCIT (2003) 81 TTJ 525 (Cal-trib) : 2003 TaxPub(DT) 44 (Cal-Trib), LMJ International Ltd. v. Dy. CIT [ITA. No. 230/Kol/2013], Dy. CIT v. Exide Industries Ltd. [ITA. No. 2518/Kol/2004] and Asstt. CIT v. Usha Martin Ltd. [ITA. No. 112/Kol/2006].
FAVOUR : In assessee's favour.
A.Y. : 2008-09 & 2011-12
INCOME TAX ACT, 1961
Section 115JB Section 14A
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