Book Profit u/s 115JB Cannot Include Share of Loss in Partnership Firm: ITAT Mumbai

Birla Group Holding Private Limited Vs ACIT (ITAT Mumbai)

The share of loss from a partnership firm, debited to the Profit and Loss Account, cannot be added back while computing book profits under section 115JB of the Act as expenditure relatable to exempt income- ITAT Mumbai

It is settled law that adjustments to the net profit for computing book profit under section 115JB are to be strictly made in accordance with the clauses specified in the Explanation to the section. There is no express provision under Explanation 1 permitting addition of the share of loss from a partner

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