HC : Reserve created on revaluatio​n of asset under amalgamati​on not to be added to book profits under MAT

Reserve created on transfer of work-in-progress at revalued amount under the scheme of amalgamation, not out of profits; Such reserve was a result of amalgamation entries passed as per accounting standard on amalgamations and the scheme approved by High Court and could not be said to be routed through P&L; Reserve not to be added to book profits for the purpose of MAT computation: Mumbai ITAT

ITO Vs. United Estate Pvt Ltd [TS-68-ITAT-2012(Mum)]