Rule 10RB-Relief in tax payable u/s 115JB(1) due to operation of Section 115JB(2D)

Income Tax Rule 10RB – Relief in tax payable u/s 115JB(1) due to operation of sub-section (2D) of section 115JB

CBDT vide Notification No. 92/2021 dated 10th August 2021 has notified Income tax (23rd Amendment), Rules, 2021. A new Income tax Rule 10RB has been inserted to provide relief in tax payable under sub-section (1) of section 115JB due to operation of sub-section (2D) of section 115JB.

As per the new Rule 10RB, the tax payable shall be reduced as under:

(A-B) –(D-C), where,

A = tax payable by the assessee company under sub-section (1) of section 115JB on the book profit of the previous year including the past income;

B = tax payable by the assessee company under sub-section (1) of section 115JB on the book profit of the previous year after reducing the book profit with the past income;

C = Aggregate of tax payable by the assessee company under sub-section (1) of section 115JB on the book profit of those past year or years to which the past income belongs; D = Aggregate of tax payable by the assessee company under sub-section (1) of section 115JB on the book profit of past year or years, referred to in item C, after increasing the book profit with the relevant past income of such year or years:

Provided that if the value of (A-B)-(D-C) in the formula is negative, its value shall be deemed to be zero.

For claiming such relief, the assessee company shall have to make a claim for relief under sub-section (2D) of section 115JB in Form No. 3CEEA electronically.

• ITAT allows exemption of Rs. 25 lakhs u/s 10(10A) to non-government employees
• PCIT has revisionary jurisdiction u/s 263 over the cases passed by the NFAC or the JAO
• Appellate court interfering with MACT finding must undertake reappreciation of evidence
• When delay is not huge & involves huge monetary liability, lenient approach to be taken
• EoGM of company can not ratify diversion of fund raised by preferential issue – SC