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“book profits”

Special Rate ProvisionsSection 115JBSection 115JB1,713 judgments

The decision most relied on for book profits is Godrej & Boyce Mfg. Co. Ltd. v. DCIT (328 ITR 81), cited in 1,183 judgments on BharatTax.

Leading authorities on book profits

Godrej & Boyce Mfg. Co. Ltd. v. DCIT
328 ITR 81 · 2010 · High Court
1,183
citing judgments

Rule 8D, for computing disallowance under Section 14A for expenses related to exempt income, applies from Assessment Year 2008-09 onwards; for prior years, a reasonable disallowance must be made. The disallowance under Section 14A cannot exceed the actual exempt income earned.

ACIT v. Vireet Investment Pvt. Ltd.
165 ITD 27 · 2017 · ITAT
882
citing judgments

No disallowance under section 14A can be made while computing book profits under section 115JB unless the expenditure is debited to the profit and loss account and satisfies clause (f) of Explanation 1 to section 115JB(2).

Joint Investments Pvt. Ltd. v. CIT
372 ITR 694 · 2015 · High Court
803
citing judgments

Disallowance under section 14A of the Income Tax Act cannot exceed the actual amount of exempt income earned by the assessee. This principle also applies when computing book profits under section 115JB.

ACIT v. Vireet Investment Pvt. Ltd.
82 Taxmann.com 415 · 2017 · High Court
789
citing judgments

Disallowance computed under Section 14A, read with Rule 8D, cannot be added to book profits under Section 115JB for Minimum Alternate Tax (MAT) purposes. Additionally, for Section 14A disallowance, only investments that yielded exempt income during the year are considered for calculating their average value.

Apollo Tyres Ltd. v. CIT
255 ITR 273 · 2002 · Supreme Court
657
citing judgments

For the purpose of computing book profits under Section 115J, arrears of depreciation, including those arising from assets working extra shifts, are a necessary charge on profits if debited to the profit and loss account and are allowable as such.

Kedarnath Jute Mfg. Co. Ltd. v. CIT
82 ITR 363 · 1971 · Supreme Court
654
citing judgments

Tax liability for an item of income or expenditure is determined solely by the provisions of the Income-tax Act. Entries in an assessee's books of account are not conclusive and do not govern the taxability or deductibility of an item, as the legal rights and obligations under the Act prevail.

CIT v. President Industries
258 ITR 654 · 2002 · High Court
471
citing judgments

When books of account are rejected and unaccounted sales or receipts are discovered, the income addition is restricted to the net profit element embedded in these undisclosed transactions, not the entire sale proceeds or receipts, especially if corresponding purchases are not proven to be outside the books.

CIT v. Yokogawa India Ltd.
341 ITR 385 · 2012 · High Court
270
citing judgments

A provision for doubtful debts cannot be added back while computing book profits under Section 115JB of the Income-tax Act for Minimum Alternate Tax (MAT) purposes.

Judgments citing book profits

DCIT Circle-1, Thane vs. M/S Everest Industries Ltd., Delhi

In the result, appeals of the Revenue as well appeals of the In the result, appeals of the Revenue as well appeals of the In the result, appeals of the Revenue as well appeals of the assessee are a...

ITA 652/MUM/2020[2014-15]Status: DisposedITAT Mumbai30 Jun 2023AY 2014-15

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant ()

For Appellant: Mr. Yogesh Thar/For Respondent: Mr. Biswanath Das, CIT-DR/

incentive and Excise Duty Exemption, exclude Sales Tax incentive and Excise Duty Exemption, exclude Sales Tax incentive and Excise Duty Exemption, while computing the book profits u/s 115JB while computing the book profits u/s 115JB while computing the book profits u/s 115JB of the Act, without appreciating that they have ... Excise Duty Exemption, while exclude Sales Tax incentive and Excise Duty Exemption, while exclude Sales Tax incentive and Excise Duty Exemption, while computing the book profits us 115JB of the Act despite the fact computing the book profits us 115JB of the Act despite the fact computing the book profits

DCIT, Circle-1, Thane vs. Everest Industries Ltd., Mumbai

In the result, appeals of the Revenue as well appeals of the In the result, appeals of the Revenue as well appeals of the In the result, appeals of the Revenue as well appeals of the assessee are a...

ITA 1424/MUM/2020[2015-16]Status: DisposedITAT Mumbai30 Jun 2023AY 2015-16

Bench: Shri Aby T Varkey () & Shri Om Prakash Kant ()

For Appellant: Mr. Yogesh Thar/For Respondent: Mr. Biswanath Das, CIT-DR/

incentive and Excise Duty Exemption, exclude Sales Tax incentive and Excise Duty Exemption, exclude Sales Tax incentive and Excise Duty Exemption, while computing the book profits u/s 115JB while computing the book profits u/s 115JB while computing the book profits u/s 115JB of the Act, without appreciating that they have ... Excise Duty Exemption, while exclude Sales Tax incentive and Excise Duty Exemption, while exclude Sales Tax incentive and Excise Duty Exemption, while computing the book profits us 115JB of the Act despite the fact computing the book profits us 115JB of the Act despite the fact computing the book profits

Beil Infrastructure Limited ('Beil')(Earlier Known As Bharuch Enviro Infrastructure Ltd), Gujrat vs. DCIT Cen Cir 6(3), Mumbai

In the result, appeal of the Revenue is partly allowed for statistical purpose

ITA 586/MUM/2017[2012-13]Status: DisposedITAT Mumbai30 Jun 2023AY 2012-13

Bench: Shri Vikas Awasthy & Shri Om Prakash Kantvk-Vk-La- 586@Eaqcbz@2017 ¼Fu-Oa- 2012&13½ Beil Infrastructure Limited (Earlier Known As Bharuch Enviro Infrastructure Limited) Plot No.9701-16, Gidc Estate, Ankleshwar Gujarat-393 002 ..... Vihykfkhz/Appellant Pan No. Aaacb8075F Cuke Vs. Deputy Commissioner Of Income Tax, Cc-6(3) Room No. 1903, 19Th Floor, Air India Building, Nariman Point ..... Izfroknh/Respondent Mumbai-400 021 Vk-Vk-La- 400@Eaqcbz@2017 ¼Fu-Oa- 2012&13½ Vk-Vk-La- 1950@Eaqcbz@2022 ¼Fu-Oa- 2015&16½ Deputy Commissioner Of Income Tax, Cc-6(3) Room No. 1903, 19Th Floor, Air India Building, Nariman Point ..... Vihykfkhz/Appellant Mumbai-400 021 Cuke Vs. Beil Infrastructure Limited (Earlier Known As Bharuch Enviro Infrastructure Limited) Plot No.117/18, Gidc Estate, Ankleshwar Gujarat-393 002 ..... Izfroknh/Respondent Pan No. Aaacb8075F

For Appellant: Shri Kirit Kamdar &For Respondent: Shri Salil Mishra, CIT-DR
Section 115JSection 14ASection 234CSection 80Section 801A

waste through incinerator amounting to Rs. 7,93,90,389/- as income for the above assessment year under normal provisions and added to the book profits under section 115JB of the Act. 7. Without prejudice to ground no. 6, the CIT(A) erred in dismissing the alternate prayer ... closing balances of such advances amounting to Rs.7,93,90,389/- as income of the assessee under normal provision and added to the Book Profit u/s 115JB of the Act. The ld. AR submitted that the assessee recognizes the revenue at the time of incineration of the waste

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5459/MUM/2017[2009-10]Status: DisposedITAT Mumbai30 Jun 2023AY 2009-10
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5458/MUM/2017[2011-12]Status: DisposedITAT Mumbai30 Jun 2023AY 2011-12
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

Jsw Steels Ltd, Mumbai vs. DCIT CC 8(3), Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5457/MUM/2017[2010-11]Status: DisposedITAT Mumbai30 Jun 2023AY 2010-11
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

DCIT CC 8(3)(Erstwhile DCIT, CC-46, Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5327/MUM/2017[2011-12]Status: DisposedITAT Mumbai30 Jun 2023AY 2011-12
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

DCIT CC 8(3)(Erstwhile DCIT, CC-46, Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5326/MUM/2017[2010-11]Status: DisposedITAT Mumbai30 Jun 2023AY 2010-11
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

DCIT CC 8(3), Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 5325/MUM/2017[2009-10]Status: DisposedITAT Mumbai30 Jun 2023AY 2009-10
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

DCIT CC 8(3), Mumbai vs. Jsw Steels Ltd, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 4632/MUM/2017[2008-09]Status: DisposedITAT Mumbai30 Jun 2023AY 2008-09
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

Jsw Steel Limited, Mumbai vs. ACIT, CC-46, Mumbai

Appeal of the revenue is partly allowed and appeal of the assessee is dismissed

ITA 4287/MUM/2017[2008-09]Status: DisposedITAT Mumbai30 Jun 2023AY 2008-09
Section 14A

disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions ('CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act. The appellant prays that the order of the CIT(A) on the above grounds be set aside and that ... disallowance u/s 14A and to consider the income on sale of Certified Emission Reductions („CER') receipts as Capital Receipt for the purpose of computing book profit u/s 115JB of the Act” Assessee’s grounds of appeal (AY 2009-10): 1. “On facts and circumstances of the case

DCIT CC 6(3), Mumbai vs. M/S Beil Infrastructure Ltd. ( Earlier Known As Bharuch Enviro Infrastructure Ltd, Anlkleshwar

In the result, appeal of the Revenue is partly allowed for statistical purpose

ITA 400/MUM/2017[2012-13]Status: DisposedITAT Mumbai30 Jun 2023AY 2012-13

Bench: Shri Vikas Awasthy & Shri Om Prakash Kantvk-Vk-La- 586@Eaqcbz@2017 ¼Fu-Oa- 2012&13½ Beil Infrastructure Limited (Earlier Known As Bharuch Enviro Infrastructure Limited) Plot No.9701-16, Gidc Estate, Ankleshwar Gujarat-393 002 ..... Vihykfkhz/Appellant Pan No. Aaacb8075F Cuke Vs. Deputy Commissioner Of Income Tax, Cc-6(3) Room No. 1903, 19Th Floor, Air India Building, Nariman Point ..... Izfroknh/Respondent Mumbai-400 021 Vk-Vk-La- 400@Eaqcbz@2017 ¼Fu-Oa- 2012&13½ Vk-Vk-La- 1950@Eaqcbz@2022 ¼Fu-Oa- 2015&16½ Deputy Commissioner Of Income Tax, Cc-6(3) Room No. 1903, 19Th Floor, Air India Building, Nariman Point ..... Vihykfkhz/Appellant Mumbai-400 021 Cuke Vs. Beil Infrastructure Limited (Earlier Known As Bharuch Enviro Infrastructure Limited) Plot No.117/18, Gidc Estate, Ankleshwar Gujarat-393 002 ..... Izfroknh/Respondent Pan No. Aaacb8075F

For Appellant: Shri Kirit Kamdar &For Respondent: Shri Salil Mishra, CIT-DR
Section 115JSection 14ASection 234CSection 80Section 801A

waste through incinerator amounting to Rs. 7,93,90,389/- as income for the above assessment year under normal provisions and added to the book profits under section 115JB of the Act. 7. Without prejudice to ground no. 6, the CIT(A) erred in dismissing the alternate prayer ... closing balances of such advances amounting to Rs.7,93,90,389/- as income of the assessee under normal provision and added to the Book Profit u/s 115JB of the Act. The ld. AR submitted that the assessee recognizes the revenue at the time of incineration of the waste

M/S Kerala Feeds Limited, Thrissur vs. DCIT Cir (1)(1) & Tps, Thrissur

In the result, the assessee’s appeal is allowed

ITA 942/COCH/2022[2012-13]Status: DisposedITAT Cochin30 Jun 2023AY 2012-13

Bench: Shri Sanjay Arora, Am & Shri Aby T.Varkey, Jm

For Appellant: Sri. Varghese C.V., CA/ARFor Respondent: Smt.J.M.Jamuna Devi, Sr. DR
Section 115Section 115JSection 143Section 143(1)Section 144Section 147Section 154Section 155Section 2(45)Section 245D

being u/s. 115-JA, and u/s. 115-JB thereafter. A minimum tax, based on 2 Kerala Feeds Ltd. v. Asst. CIT ‘book-profit’, clearly defined, representing the profit as per the audited accounts, and sans any deduction, was adopted as the alternative tax base, either by deeming income with reference ... taxable income would once again stand to be determined with reference to the regular provisions of the Act. The tax paid earlier on book-profit under MAT was accordingly to be set off (s.115-JAA), so that a uniform basis for taxation obtains. This was also considered necessary as otherwise

Strides Shasun Ltd, Navi Mumbai vs. DCIT Cir 15(3)(2), Mumbai

ITA 1992/MUM/2016[2011-12]Status: DisposedITAT Mumbai28 Jun 2023AY 2011-12

Bench: Shri Kuldip Singh & Ms. Padmavathy Sassessment Year: 2011-12

For Appellant: Shri Ninad Patade, A.RFor Respondent: Shri Manoj Kumar, CIT D.R
Section 143Section 144C(1)Section 14ASection 92C

delete the disallowance u/s. 14A of the Act and to re-compute its tax liability accordingly. 7:0 Re.: Disallowance u/s. 14A while computing 'book profits' u/s. 11538 of the Income-tax Act, 1961: 7: 1 The Assessing Officer and the Dispute Resolution Panel have erred in increasing the 'book ... held as such. 7:3 The Appellant submits that the Assessing Officer be directed to delete the disallowance made u/s. 14A made to the 'book profits' and to re-compute its total income and tax thereon accordingly. 8:0 Re: Credit for foreign taxes paid: 8:1 The Assessing Officer

Finquest Securities Pvt Ltd., Mumbai vs. DCIT, CC-3(4), Mumbai

The appeal of the assessee is allowed for statistical purposes

ITA 623/MUM/2023[2015-16]Status: DisposedITAT Mumbai27 Jun 2023AY 2015-16

Bench: Shri Aby T. Varkey () & Ms. Padmavathy S. ()

Section 115JSection 250Section 36(2)

circumstances of the case, and in law, the Ld. CIT(A) erred in confirming the addition of Rs.l,06,00,OOO/- made to the book profit u/s. 115JB of the Act. The Ld. CIT(A) erred in holding the aforesaid sum as a provision for unascertained liability. Your appellant, therefore ... prays that the aforesaid addition of Rs.1,06,00,000/- be deleted from the book profit computed u/s. 115JB of the Act.” 2. The assessee is a share broker and maintains a D-mat account on behalf of its clients wherein the purchases and sales are routed through a pool

Broom Publications Pvt. Ltd., Faridabad vs. ITO Ward 1(2), Faridabad

In the result, the appeal of the assessee on this ground is allowed

ITA 6177/DEL/2019[2015-16]Status: DisposedITAT Delhi27 Jun 2023AY 2015-16

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Rajeev Saxena, AdvFor Respondent: Sh. Kanv Bali, Sr. DR
Section 14Section 2Section 56Section 56(2)(viib)Section 68

claimed as refund under the Income-tax Act, to the extent of the excess over the tax payable with reference to the book profits in accordance with the law applicable thereto; (v) any amount representing provisions made for meeting liabilities, other than ascertained liabilities; (vi) any amount representing contingent liabilities

Balgopal Cold Storages Pvt. Ltd., Faridabad vs. ITO Ward 1(2), Faridabad

In the result, the appeal of the assessee on this ground is allowed

ITA 6176/DEL/2019[2015-16]Status: DisposedITAT Delhi27 Jun 2023AY 2015-16

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Rajeev Saxena, AdvFor Respondent: Sh. Kanv Bali, Sr. DR
Section 14Section 2Section 56Section 56(2)(viib)Section 68

claimed as refund under the Income-tax Act, to the extent of the excess over the tax payable with reference to the book profits in accordance with the law applicable thereto; (v) any amount representing provisions made for meeting liabilities, other than ascertained liabilities; (vi) any amount representing contingent liabilities

DCIT, Circle- 10(1), New Delhi vs. Global Green Company Ltd., New Delhi

In the result, the appeals of the assessee are partly allowed for statistical purpose and the appeals of the revenue are dismissed

ITA 7541/DEL/2019[2011-12]Status: DisposedITAT Delhi20 Jun 2023AY 2011-12

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

section 438 of the Act. GROUND XII: ADDITION OF PROVISION FOR BAD AND DOUBTFUL FARMER ADVANCES OF RS. 1,56,84,359/- TO THE BOOK PROFITS U/S. 115JB. 12.1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in upholding ... doubtful farmer advances of Rs. 1,56,84,359 as provision for diminution in value of assets and thereby, adding the same to the book profits u/s. 115JB of the Act. 12.2 The Ld. CIT(A) further erred in not holding that where the provision is rightly made by debiting

Global Green Company Ltd., New Delhi vs. DCIT, Circle- 10(1), New Delhi

In the result, the appeals of the assessee are partly allowed for statistical purpose and the appeals of the revenue are dismissed

ITA 6940/DEL/2019[2011-12]Status: DisposedITAT Delhi20 Jun 2023AY 2011-12

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

section 438 of the Act. GROUND XII: ADDITION OF PROVISION FOR BAD AND DOUBTFUL FARMER ADVANCES OF RS. 1,56,84,359/- TO THE BOOK PROFITS U/S. 115JB. 12.1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in upholding ... doubtful farmer advances of Rs. 1,56,84,359 as provision for diminution in value of assets and thereby, adding the same to the book profits u/s. 115JB of the Act. 12.2 The Ld. CIT(A) further erred in not holding that where the provision is rightly made by debiting

Global Green Company Ltd., New Delhi vs. DCIT, New Delhi

In the result, the appeals of the assessee are partly allowed for statistical purpose and the appeals of the revenue are dismissed

ITA 2233/DEL/2017[2004-05]Status: DisposedITAT Delhi20 Jun 2023AY 2004-05

Bench: Sh. C. N. Prasaddr. B. R. R. Kumar

For Appellant: Sh. Yogesh Thar, CAFor Respondent: Sh. Mrinal Kumar Das, Sr. DR
Section 37(1)Section 92CSection 92C(2)

section 438 of the Act. GROUND XII: ADDITION OF PROVISION FOR BAD AND DOUBTFUL FARMER ADVANCES OF RS. 1,56,84,359/- TO THE BOOK PROFITS U/S. 115JB. 12.1 On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in upholding ... doubtful farmer advances of Rs. 1,56,84,359 as provision for diminution in value of assets and thereby, adding the same to the book profits u/s. 115JB of the Act. 12.2 The Ld. CIT(A) further erred in not holding that where the provision is rightly made by debiting