INDO RAMA SYNTHETICS (I) LTD. vs C.I.T,NEW DELHI

The Supreme Court ruled on the interpretation of Section 115JB of the Income Tax Act regarding the treatment of revaluation reserves. The Court held that amounts transferred from a revaluation reserve to the profit and loss account cannot be excluded from the computation of book profit unless the reserve was created in a year where the book profit was increased by that reserve. The Court upheld the decisions of the lower authorities, affirming that the revaluation reserve does not impact the profit and loss account in the year of its creation, thus supporting the Assessing Officer's decision.