Held that the assessee was entitled to reduce profits derived from its CPP from its book profits, while determining MAT payable under section 115JA of the Act. Followed CIT v. DCM Shriram Consolidated Ltd. [IT Appeal No. 1187 of 2005, dated 21-11-2008]. Provision for liability in respect of post-retirement medical benefits and leave encashment determined as an accrued liability and computed on basis of actuarial valuation by assessee could not be included in its book profits under section 115JA of the Act. (AY. 1997-98)
National Aluminium Company Ltd. v. CIT (2022) 287 Taxman 703 / 213 DTR 155/326 CTR 385 /( 2023) 456 ITR 503(Orissa) (HC)
S. 115JA : Book profit-Mining, production and generation of aluminum, generated power-Captive power plant (CPP) for internal consumption-Profits derived from CPP was to be reduced from book profits-Provision for liability in respect of post-retirement medical benefits and leave encashment determined as an accrued liability and computed on basis of actuarial valuation by assessee could not be included in its book profits. [S. 115JA(iv)]