Even statutory reserve created by NBFC was to be added back for computing book profits for MAT purposes

For the purpose of section 115JB of the Act, statutory reserves (such as reserve required to be created by NBFC under section 45-IC of the RBI Act,1934) are to be treated alike and in a similar manner as other reserves. The reserve, which is required to be created under section 45-IC of the Reserve Bank of India Act, 1934 , is out of the profits earned by a non-banking financial institution.

← Initiation of search would provide sec. 153A jurisdiction even if no undisclosed income was unearthed in search
Vodafone India Services Pvt. Ltd. Versus Union of India, Addl. Commissioner of Income Tax, Dy. Commissioner of Income Tax – 2014 (10) TMI 278 – BOMBAY HIGH COURT – Income Tax →