Opinion Of Eminent Legal Luminaries On Controversial Issues

Book profit -Agricultural income of Company

QUERY: A Co. has only agricultural income & income from sale of rural agricultural land (not capital assets). Can there be any liability under MAT?
ANSWER: From the fact, it is apparent that querist is a company and therefore no Alternate Minimum Tax (AMT) would be applicable. For the companies Minimum Alternate Tax (MAT) would be applicable u/s. 115JB of the Act.
So while calculating “book profit” under Explanation 1 to section 115JB(1), the agricultural income falling u/s. 10(1) to be excluded as per Explanation (ii), which reads as under:
“The amount of income to which any of the provisions of section 10 (other than provisions contained in clause 38 thereof) or section 11 or section 12 apply, if any such amount is credited to the statement of profit and loss.”

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