Disallowance u/s 14A Cannot Be Added Back While Computing Book Profits u/s 115JB of Income Tax: ITAT

The ITAT (Income Tax Appellate Tribunal) has ruled that "disallowance under Section 14A cannot be added back while computing book profits under Section 115JB (MAT) of the Income Tax Act." Section 14A disallows expenses incurred to earn exempt income, while Section 115JB deals with Minimum Alternate Tax (MAT) based on book profits. The tribunal clarified that adjustments under Section 14A are specific to normal computation of total income and should not automatically be included when calculating book profits for MAT purposes, providing relief to companies.