2011 (10) TMI 19 - SUPREME COURT

Computation of Book Profit - Minimum Alternate Tax (MAT) - Claim of deduction u/s 80HHE rejected by AO saying that since in normal computation there is no profit after carry-forward loss, deduction under Section 80HHE to the extent of Rs.1,56,33,719/- for computing book profit under Section 115JA was not admissible. - Held that:- Following the view taken by the Special Bench in Syncome Formulations (2007 -TMI - 59552 - ITAT BOMBAY-H ), the Tribunal in the present case came to the conclusion that deduction claimed by the assessee under Section 80HHE has to be worked out on the basis of adjusted book profit under Section 115JA and not on the basis of the profits computed under regular provisions of law applicable to computation of profits and gains of business. The judgment of the Tribunal has been upheld by the High Court. - Decided in favor of assesseee.