https://www.taxtmi.com/caselaws?id=65237 The Tribunal allowed the assessee's appeal, permitting the deduction of Rs. 12,00,000 for computing book profits under Section 115JB. The decision emphasized the legislative intent to levy minimum tax on certain companies' book profits to prevent tax avoidance by zero-tax entities. The Tribunal found the provision to be a contingent liability, not an ascertained liability, as no salary was payable due to the company's losses. This ruling aligned with the law's purpose, preventing undue hardship and injustice, and rejected the hyper-technical interpretation of the Assessing Officer, diverging from the spirit of the legislation. en-us Thu, 08 Apr 2004 00:00:00 +0530 Mon, 14 Feb 2011 13:36:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=65237 The Tribunal allowed the assessee's appeal, permitting the deduction of Rs. 12,00,000 for computing book profits under Section 115JB. The decision emphasized the legislative intent to levy minimum tax on certain companies' book profits to prevent tax avoidance by zero-tax entities. The Tribunal found the provision to be a contingent liability, not an ascertained liability, as no salary was payable due to the company's losses. This ruling aligned with the law's purpose, preventing undue hardship and injustice, and rejected the hyper-technical interpretation of the Assessing Officer, diverging from the spirit of the legislation. Case-Laws Income Tax Thu, 08 Apr 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=65237