AMT provisions u/s 115JC do not apply to pre-approved housing projects: ITAT

  • Blog|News|Income Tax|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 21 February, 2023

AMT provisions u/s 115JC

Case Details: ACIT v. Vijay Tukaram Raundal - [2023] 147 taxmann.com 53 (Pune-Trib.)

Judiciary and Counsel Details

    • R.S. Syal, Vice President &  S.S. Viswanethra Ravi, Judicial Member
    • Sardar Singh Meena for the Appellant.
    • Mihir Naniwadekar for the Respondent.

Facts of the Case

Assessee-individual was a builder and developer. For the relevant assessment year, assessee computed income under normal provisions of the Act [total income after claiming deduction under section 80-IB(10)] and adjusted total income as per section 115JC. Assessee filed return of income by declaring income as per section 115JC.

The applicability of section 115JC was not contested before the CIT(A). However, the assessee raised the issue for the first time before the Tribunal by disputing its incorrect application due to the housing project’s earlier commencement in a prior year.

ITAT Held

The Tribunal held that the section 115JC starts with a non obstante clause and provides that where the regular income tax ‘payable for a previous year’ is less than the alternate minimum tax payable for ‘for such previous year, the adjusted total income shall be deemed to be the total income of that person ‘for such previous year’ and he shall be liable to pay income-tax on such total income at the rate of 18.5 percent.

This provision unambiguously pertains to the total income “of the previous year” which must be replaced in accordance with this provision’s requirement if the income for that previous year under the regular provisions is lower than what is specified in this section.

The assessee contended that though this section applies to the year under consideration, it should not be applied because the housing project was approved in an earlier year when this section was not in vogue.

Tribunal said it found no logic in the interpretation of this provision as made by the assessee. Neither section 115JC excludes its application in respect of housing projects approved before its insertion nor does section 80-IB(10) contain any such stipulation.

As section 115JC applies to a previous year, it cannot be construed to have applicability in part qua the other incomes and inapplicability in respect of income from the housing projects approved under section 80-IB(1) before it came into force.

Therefore, there was no merit in the ground raised by the assessee.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied