Book profit under MAT requires sale proceeds of fixed assets to pass through the profit and loss account, not reserves.

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....Profit on sale of fixed assets was required to be routed through the profit and loss account for computation of book profit under section 115JB, because Part II of Schedule VI requires disclosure of material receipts and exceptional transactions in the accounts. Direct credit of such capital profit to reserves and surplus was treated as an impermissible deviation from the prescribed accounting format, particularly where no justifiable reason for the departure was shown. Relying on Supreme Court authority, the Court affirmed that the company must prepare its accounts strictly in accordance with Schedule VI for MAT purposes and upheld reworking of book profits accordingly.....