Recomputation of book profit on application where APA or secondary adjustment increases it; AO to recompute and apply rectification. A dividend is to be treated like specified incomes for exclusion from book profit when credited to profit and loss and taxed at a lower rate; related expenses are similarly allowable. Additionally, where an APA or a secondary adjustment increases a prior year's book profit, the company may apply to the Assessing Officer for recomputation of that past year's book profit and tax in the prescribed manner, with the rectification mechanism applying and the limitation period reckoned from the end of the financial year in which the application is received.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Recomputation of book profit on application where APA or secondary adjustment increases it; AO to recompute and apply rectification.
A dividend is to be treated like specified incomes for exclusion from book profit when credited to profit and loss and taxed at a lower rate; related expenses are similarly allowable. Additionally, where an APA or a secondary adjustment increases a prior year's book profit, the company may apply to the Assessing Officer for recomputation of that past year's book profit and tax in the prescribed manner, with the rectification mechanism applying and the limitation period reckoned from the end of the financial year in which the application is received.
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