The ITAT held that prior period and extraordinary items, though...

The ITAT held that prior period and extraordinary items, though separately disclosed under Section 115JA(2) read with Section 211 of the Companies Act, form an integral component of net profit for the purposes of MAT computation under Section 115JB. The assessee's approach of not adding back prior period expenses to book profits was upheld since these items were already subsumed within the net profit figure, and their separate disclosure was intended solely for transparency regarding their impact on current profits. The tribunal rejected the notion that the net profit should be computed excluding such items. Consequently, the assessee was not required to make any further adjustments in the book profit computation under Section 115JB, and the appeal was allowed in favor of the assessee.