Held that certain amount as debenture redemption reserve (DRR) which was compulsory under section 117C of Companies Act, 1956, same could not be considered as reserve within meaning of Explanation 1(b) of section 115JB and; therefore, same was to be excluded while computing book profits under section 115JB of the Act. Capital profits earned on sale of fixed assets and investment should be included while computing book profit. (AY. 2013-14)
ACIT v. India Power Corporation Ltd. (2021) 191 ITD 250 (Kol.) (Trib.)
S. 115JB : Book profit-Debenture redemption reserve (DRR), Amount could not be considered as reserve-To be excluded while computing book profit-Capital gains on transfer of assets and investment should be included while computing book profit. [S. 45, Companies Act, 1956, S. 117C]