Applicability of MAT on Revaluation Reserve credited to profit and loss account

The case of the assessee was that it was covered by the proviso to clause (i) and, therefore, it was justified in reducing the amount from the book profit. The case of the revenue was based on the fact that while working out book profits of earlier years, the assessee had claimed depreciation on the enhanced value of the assets and, therefore, a further reduction of the amount during the year would lead to double deduction. The case of the revenue was not based on correct legal interpretation of the clause and the proviso thereto. The reserve was created by the

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