Income Tax Act, 2025
Section 2: Subs. by Act 4 of 1988, s. 2, for “Income-tax officer” (w.e.f. 11989).
2. Subs. by Act 4 of 1988, s. 2, for “Income-tax officer” (w.e.f. 11989).
481
1[CHAPTER XII-B
SPECIAL PROVISIONS RELATING TO CERTAIN COMPANIES
115J. Special provisions relating to certain companies.—(1) Notwithstanding anything contained
in any other provision of this Act, where in the case of an assessee being a company 2[(other than a
company engaged in the business of generation or distribution of electricity)], the total income, as
computed under this Act in respect of any previous year relevant to the assessment year commencing on
or after the 1st day of April, 1988 3[but before the 1st day of April, 1991] (hereafter in this section
referred to as the relevant previous year), is less than thirty per cent of its book profit, the total income of
such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to
thirty per cent of such book profit.
4[(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 accordance with 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 profit as shown in the
profit and loss account for the relevant previous year 5[prepared under 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 2[(other than the reserves specified in section 80HHD
6[or sub-section (1) of section 33AC])], by whatever name called; or
(c) the amount or amounts set aside to provisions made for meeting liabilities, 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 to which any of the provisions
of Chapter III 7[applies; or]
2[(g) the amount withdrawn from the reserve account under section 80HHD, where it has been
utilised for any purpose other than those referred to in sub-section (4) of that section; or
(h) the amount credited to the reserve account under section 80HHD, to the extent that amount
has not been utilised within the period specified in sub-section (4) of that section;]
6[(ha) the amount deemed to be the profits under sub-section (3) of section 33AC,]
8[if any amount referred to in clauses (a) to (f) is debited or, as the case may be, the amount referred to in
clauses (g) and (h) is not credited] to the profit and loss account, and as reduced by,—
(i) the amount withdrawn from reserves 2[(other than the reserves specified in section 80HHD)]
or provisions, if any such amount is credited to the 9[profit and loss account:
Notwithstanding anything contained
in any other provision of this Act, where in the case of an assessee being a company 2[(other than a
company engaged in the business of generation or distribution of electricity)], the total income, as
computed under this Act in respect of any previous year relevant to the assessment year commencing on
or after the 1st day of April, 1988 3[but before the 1st day of April, 1991] (hereafter in this section
referred to as the relevant previous year), is less than thirty per cent of its book profit, the total income of
such assessee chargeable to tax for the relevant previous year shall be deemed to be an amount equal to
thirty per cent of such book profit.
4[
Every assessee, being a company, shall, for the purposes of this section, prepare its profit and
loss account for the relevant previous year in accordance with 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 profit as shown in the
profit and loss account for the relevant previous year 5[prepared under sub-section
the amount of income-tax paid or payable, and the provision therefor; or
the amounts carried to any reserves 2[(other than the reserves specified in section 80HHD
6[or sub-section
of section 33AC])], by whatever name called; or
the amount or amounts set aside to provisions made for meeting liabilities, other than
ascertained liabilities; or
the amount by way of provision for losses of subsidiary companies; or
the amount or amounts of dividends paid or proposed; or
the amount or amounts of expenditure relatable to any income to which any of the provisions
of Chapter III 7[applies; or]
2[
the amount withdrawn from the reserve account under section 80HHD, where it has been
utilised for any purpose other than those referred to in sub-section
of that section; or
the amount credited to the reserve account under section 80HHD, to the extent that amount
has not been utilised within the period specified in sub-section
of that section;]
6[
the amount deemed to be the profits under sub-section
of section 33AC,]
8[if any amount referred to in clauses
to
is debited or, as the case may be, the amount referred to in
clauses
and
is not credited] to the profit and loss account, and as reduced by,—
the amount withdrawn from reserves 2[(other than the reserves specified in section 80HHD)]
or provisions, if any such amount is credited to the 9[profit and loss account: