Provisions u/s 14A of Income Tax Act not Applicable in Computing Book Profit u/s. 115JB: ITAT

The ITAT ruled that provisions under section 14A of the Income Tax Act, which disallow expenses related to exempt income, are not applicable when computing book profits under section 115JB. The case concerned the computation of book profits for Minimum Alternate Tax (MAT) purposes, with the assessing officer initially disallowing expenses related to exempt income. However, the ITAT held that the disallowance provisions under section 14A apply only for regular tax computation and do not extend to the MAT framework. This ruling provides clarity on how book profits should be calculated, ensuring that taxpayers are not penalized for expenses linked to exempt income when computing their MAT liabilities.