Mumbai bench of Income Tax Appellate Tribunal (ITAT) recently held that it is need not be to compute Minimum Alternate Tax when the assessee maintaining books of accounts under the regulatory act instead of companies act under Section 115JB of the Income Tax Act 1961.
Assessee in the present case engaged in electricity business and following electricity regulatory act.
Revenue contended that Section 115JB is not applicable to the assessee company as the Accounts of the assessee are not prepared according to provisions of Electricity Supply Act.
The bench comprising of Judicial Member Ravish Sood and Vice President P.K. Bansal observed that it is need not to compute minimum alternate tax while the assessee following electricity regulatory act. While perusing the material facts and financial statements it is clear that the assessee company engaged in the electricity business and maintaining their books of accounts under the electricity act as per section 115JB of the act. Hence it can be concluded that the assessee need not to compute any alternate tax.
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