Assessee-company, during the year, transferred a certain amount to the income tax special reserve in accordance with the provisions of section 36(1)(viii). Assessee claimed that said amount was transferred to the income tax special reserve out of statutory compulsion and, therefore, the same was to be excluded in computing book profit under section 115JB.However, the Assessing Officer did not allow the same and added the amount transferred to the income tax special reserve to book profit. CIT(A) affirmed the order of the Assessing Officer. On appeal, the Tribunal held that section 36(1)(viii) provides for taxability of amount withdrawn from the special reserve under section 36(1)(viii) under head, profit and gains from business and profession. Therefore, amount transferred to special reserve as per section 36(1)(viii) is taxable in year in which amount is withdrawn from such reserve and, accordingly, said amount transferred to reserve under section 36(1)(viii) shall not be included in book profit under section 115JB.  If grant of reserve was allowed to be added to book profit, it would create several practical difficulties, therefore, order of CIT(A)  was to be set aside and the Assessing Officer was t directed to allow said provisions while computing book profit under section 36(1)(viii) of the Act. AY. 2018-19)