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Even exempt capital gains are includible in “book profits”
Case Law Details
- Case Name
- Growth Avenue Securities vs. DCIT (ITAT Delhi)
- Courts
- All ITAT, ITAT Delhi
The assessee earned long-term capital gains of Rs. 40.57 L which was not chargeable to tax u/s 54EC. As the said gains were credited to the P&L A/c, the assessee excluded the gains whilst computing “book profits” u/s 115JB in view of the Special Bench judgement in Sutlej Cotton Mills 45 ITD 22 (Cal) (SB) where it had been held that non-taxable capital receipts had to be excluded from book profits. The AO and the CIT (A) rejected the claim. On appeal by the assessee HELD dismissing the appeal:
(i) The effect of the judgements of the Supreme Court in Apollo Tyres and HCL Comnet is that i...
