Minimum Alternate Tax computation provisions remain inapplicable to statutory corporations not incorporated under company law and governed by separate accounting statutes.

Minimum Alternate Tax under Section 115JB does not apply to a statutory corporation constituted under a Central enactment where it is not incorporated under the Companies Act and maintains accounts under its own governing statute rather than in the manner required for companies. Although such a corporation may be treated as an Indian company under the Income-tax Act, the book-profit computation machinery is described as inapplicable. The amendment to Section 115JB(2)(b), effective from 1 April 2013, is stated not to change that position, based on precedent concerning an analogous statutory board.

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Issues: Whether Minimum Alternate Tax under Section 115JB applies to a statutory corporation constituted under a Central enactment but not incorporated as a company under the Companies Act, including after the amendment effective from 01.04.2013.

Analysis: Although the assessee is treated as an Indian company under the Income-tax Act, 1961, it is not a company incorporated under the Companies Act, 2013. The machinery for computation of book profit under Section 115JB is inapplicable where the statutory corporation is governed by its own enactment and does not prepare accounts in the manner contemplated for companies under the Companies Act. The amended Section 115JB(2)(b) does not alter this position. The binding precedent concerning an analogous statutory board was applied.

Conclusion: Section 115JB of the Income-tax Act, 1961 does not apply to the assessee; the issue is decided in favour of the assessee.

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