ITAT Bangalore Rules Section 54G Exemption Valid in Minimum Alternate Tax Computation

The Bangalore bench of the Income Tax Appellate Tribunal has allowed a Section 54G exemption claim amounting to ₹3.11 crore while computing Minimum Alternate Tax under Section 115JB of the Income Tax Act. The tribunal granted this relief to the assessee despite the specific claim having been omitted from the initially filed income tax return.

This ruling addresses the legal treatment of specific capital gains deductions when calculating book profits for corporate tax liabilities. Allowing such exemptions during MAT computations provides significant tax relief for businesses undergoing structural relocations or industrial shifts under the relevant statutory provisions.

Tax professionals handling corporate assessments should review this tribunal decision when advising clients on pending MAT disputes involving omitted exemptions. Assessees with similar factual matrices should consult legal counsel regarding rectification or appellate options for their own filings.