The assessee had not computed income under the provisions of ...

Company under voluntary liquidation denied MAT exemption, book profit computation mandated despite inability claims.

Case Laws     Income Tax

September 19, 2024

The assessee had not computed income under the provisions of Minimum Alternate Tax (MAT) and had not computed book profit, claiming that the provisions of MAT were not applicable. The Dispute Resolution Panel (DRP) vehemently argued that there is no exception carved out for a company under voluntary liquidation for the purposes of taxation u/s 115JB. The ITAT held that any assessee covered u/s 115JB will necessarily have to compute book profit for MAT purposes, unless specifically exempted within the said provision. The appellant's case did not fall within any exceptions, and the applicability of Section 115JB was upheld. The appellant's helplessness in computing book profit was rejected, as the assessee had disclosed total income for certain assessment years, indicating the ability to determine profits and losses or prepare a statement of profit and loss, leading to MAT computation. The appeal filed by the assessee was dismissed.

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