MAT need not be based on audited accounts not complying with the prescribed format: ITAT Mumbai

Mumbai Income Tax Appellate Tribunal (ITAT) ruled out in the case of Bombay Diamond Co. Ltd. (Taxpayer) [2009-TIOL-760- 1TAT-MUM] on the issue of whether the Tax Authority has power to adjust the book profit base for the computation of Minimum Alternate Tax (MAT), if it is apparently found that audited accounts are not prepared in accordance with Schedule VI (prescribed format) of The Companies Act, 1956 (Co Act). The ITAT held that for the computation of MAT, profits disclosed as per the audited accounts should be adopted, provided the accounts are prepared in the prescribed format. If the ac...