2015 (2) TMI 759 - SCH - Income Tax

Computation of Minimum Alternate Taxation (MAT) u/s 115JA - whether the assessee would be entitled to reduce the book profits to the extent of profit derived from its CPPs, while computing MAT under Section 115JA? - Held that - The High Court in 2008 (11) TMI 44 - DELHI HIGH COURT has correctly relied upon the decision of Tata Iron and Steel Co. Ltd. v. State of Bihar 1962 (9) TMI 49 - SUPREME COURT to conclude it is quite evident that assessee's CPPs can as a matter of principle derive profits which is in point of fact embedded in the ultimate profit earned on the sale of the final product. - Assessee is entitled to reduce from its book profits, the profits derived from its CPPs, in determining tax payable for the purposes of Section 115JA of the Act. - Decided in favour of assessee.

Summary

The Supreme Court judgment in 2015 (2) TMI 759 upheld the decision of the High Court based on the precedent set in Tata Iron and Steel Co. Ltd. v. State of Bihar [1963] 48 ITR (SC) 123. The civil appeals were dismissed with no order as to costs.