Answers On Topic: book profit u/s 115JB
The assessee had issues that had gone to ITAT for ASST YEAR 2006-07 and thereafter AO gave appeal effect order.THEREAFTER the AO compared normal income and 115JB calculations .However in 115JB calculations the AO ignored 88E which per settled law is allowable from tax on 115JB income(PER KARNATAKA HC AND DELDI HC).The AO granted LOWER refunds on basis of 115JB calculations as it is higher on TAXABILITY as rebate was denied of section 88E from tax on 115JB.BEFORE CIT(A) AND ITAT 88E AND 115JB THINGS WERE CONSEQUENTIAL ISSUE AS STT AND NON STT INCOME CALULATIONS WERE MAIN ISSUES. QUESTIONS 1.WHAT…
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Company amortize lease premium paid for leasehold land every year in its books of account and got disallowed while computing the taxable income under the provision of Income tax act considering the same is a capital expenditure. However no adjustment has been made while computing book profit u/s 115JB of Income tax act. Accordingly book profit is lower to that extent. The AO added back the same. How to proceed, please guide.
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SECTION 88E AND 115JB