SC decision in Malayala Manorama - - referred to larger Bench
THE whole purpose of Section 115J was to take care of the phenomenon of prosperous `zero tax' Companies not paying taxes though they continued to earn profits and declare dividends. It does not make any distinction between public and private limited companies. It needs to be reiterated that, once a Company falls within the ambit of it being a MAT Company, Section 115J of the Act applies and, under that section, such an assessee-Company was required to prepare its profit and loss account only in terms of Parts II and III of Schedule VI to 1956 Act.
The Supreme Court yesterday referred the matter to a Larger Bench and we bring you the judgement today.