https://www.taxtmi.com/caselaws?id=789059 Profit on sale of fixed assets cannot be taken directly to reserves and surplus when computing book profit under section 115JB; it must first be routed through the profit and loss account prepared in accordance with the prescribed accounting framework. The MAT computation starts with the correctly drawn profit and loss account, and a company cannot bypass that statement by straightaway crediting sale gains to reserves. Applying the special MAT provisions strictly, the Court held that the assessee's accounting treatment was impermissible and that the transfer had to be reflected through the profit and loss account before book profit is determined. en-us Fri, 20 Mar 2026 00:00:00 +0530 Thu, 02 Apr 2026 08:50:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789059 Profit on sale of fixed assets cannot be taken directly to reserves and surplus when computing book profit under section 115JB; it must first be routed through the profit and loss account prepared in accordance with the prescribed accounting framework. The MAT computation starts with the correctly drawn profit and loss account, and a company cannot bypass that statement by straightaway crediting sale gains to reserves. Applying the special MAT provisions strictly, the Court held that the assessee's accounting treatment was impermissible and that the transfer had to be reflected through the profit and loss account before book profit is determined. Case-Laws Income Tax Fri, 20 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789059