Sec.115 JB

This query is : Resolved

bhupesh saxena (Querist)
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13 July 2009 Q. Should Following item be "Add back" or "reduced" from the P & L (as per Companies act) for the purpose of making P&L as per Sec.115 JB :

(1) Excess Income tax, which was paid earlier is refunded during the C.Y.

(2) Penalty of any act(other then Income tax act 1961)

vinod kumar lalwani

vinod kumar lalwani (Expert)
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13 July 2009 hello!

we can adjust our book profit only by items given in sectin 115jb and not any other items.

income tax refund is not a income and it can not be adjusted. as when u paid income tax excess then a asset named IT Refundable was booked and whenever it will be crystalised then it will not affect profit and loss account and entry will bw

cash a/c dr.
IT refundable.

as far as penaty is concern it is a expenses disallowed when co. pays tax as per normal provisions not MAT. so it would not be liable to be adjusted.