115 JB-prior period items

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Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2010 whether donation,bonus and exgratia for prior years,sales tax and excise duty for prior years charged in profit and loss appropriation account can it be claimed as deduction u/s 115JB of the Income Tax Act,1961 while calculating book profits following Accounting Standards-5

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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10 February 2010 Yes, these can be claimed as deduction unser section 115JB.

You are only required to make adjustements only for those items which are specifically mentioned in the section. As these don;t fall in prescribed adjustements, these are not required to be added back to profit for calculating book profit.

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