Capital profit from sale of Fixed Assets to be routed through P&L rather than directly taken to reserves

PVP Corporate Parks Pvt. Ltd. Vs DCIT (Madras High Court) Madras High Court held that capital profit on the sale of the Fixed Assets of the Company cannot be taken directly to the Reserves & Surplus in the Balance Sheet and the same has to be routed through the Profit & Loss Account to arrive at the correct book profits u/s. 115JB of the Income Tax Act. Accordingly, the appeal stands dismissed. Facts- The Appellant/Assessee, a Private Limited Company is engaged in the business of leasing and renting of amenities and buildings. The return of the assessee was selected for scrutiny and n...