India - Income Tax Act 2010 - Saarc

1.563 CH. XII-B - SPECIAL PROVISIONS RELATING TO CERTAIN COMPANIES S. 115Jfor that assessment year under section 139 declaring therein] that the provisionsof this Chapter shall not apply to him for that assessment year and if he does so,the provisions of this Chapter shall not apply to him for that assessment year andhis total income for that assessment year shall be computed and tax on such totalincome shall be charged in accordance with the other provisions of this Act.]50[CHAPTER XII-BSPECIAL PROVISIONS RELATING TO CERTAIN COMPANIESSpecial provisions relating to certain companies.115J. (1) Notwithstanding anything contained in any other provision of thisAct, where in the case of an assessee being a company 51 [(other than acompany engaged in the business of generation or distribution of electricity)], thetotal income, as computed under this Act in respect of any previous year relevantto the assessment year commencing on or after the 1st day of April, 1988 52 [butbefore the 1st day of April, 1991] (hereafter in this section referred to as therelevant previous year), is less than thirty per cent of its book profit, the totalincome of such assessee chargeable to tax for the relevant previous year shall bedeemed to be an amount equal to thirty per cent of such book profit.53[(1A) Every assessee, being a company, shall, for the purposes of this section,prepare its profit and loss account for the relevant previous year in accordancewith the provisions of Parts II and III of Schedule VI to the Companies Act, 1956(1 of 1956).]Explanation.—For the purposes of this section, “book profit” means the net profitas shown in the profit and loss account for the relevant previous year 54 [preparedunder sub-section (1A)], as increased by—(a) the amount of income-tax paid or payable, and the provision therefor;or(b) the amounts carried to any reserves 55 [(other than the reservesspecified in section 80HHD 56 [or sub-section (1) of section 33AC])], bywhatever name called; or(c) the amount or amounts set aside to provisions made for meetingliabilities, other than ascertained liabilities; or(d) the amount by way of provision for losses of subsidiary companies; or(e) the amount or amounts of dividends paid or proposed; or(f) the amount or amounts of expenditure relatable to any income towhich any of the provisions of Chapter III 57 [applies; or]50. Inserted by the Finance Act, 1987, w.e.f. 1-4-1988.51. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.52. Inserted by the Finance Act, 1990, w.e.f. 1-4-1990.53. Inserted by the Finance Act, 1989, w.e.f. 1-4-1989.54. Substituted for “prepared in accordance with the provisions of Parts II and III of the SixthSchedule to the Companies Act, 1956 (1 of 1956)”, ibid.55. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.56. Inserted by the Direct Tax Laws (Second Amendment) Act, 1989, w.e.f. 1-4-1990.57. Substituted for “applies,” by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989.