Benefit of indexed cost of acquisition allowed while computing book profit u/s. 115JB

DCIT Vs Eris Lifesciences Ltd. (ITAT Ahmedabad)

ITAT Ahmedabad held that the assessee is entitled to the benefit of indexed cost of acquisition while computing book profit under section 115JB of the Income Tax Act. Accordingly, AO directed to recompute book profit after allowing indexation.

Facts- The assessee is a pharmaceutical manufacturing company. During assessment proceedings, AO invoked section 14A read with Rule 8D on the ground that the assessee held substantial investments that yielded exempt income and no separate accounts were maintained to demo

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