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2014 (10) TMI 176 - AT - Income TaxReduction of profits from deduction u/s 80HHC – Computation of book profits u/s 115JB - Held that:- The AO has not allowed benefit of deduction u/s.80HHC while computing book profits as per the provisions of sec.115JB - For the purpose of 115JB, the profits of business as per the provisions of section 80HHC should be computed on book profits – following the decision in Ajanta Pharma Ltd. vs CIT [2010 (9) TMI 8 - SUPREME COURT] - for the purposes of sec. 115JB the relief will be computed as per the provisions of sec.80HHC(3)/80HHC(3A) - provisions of sec. 80HHC(1B) will not be applicable for the purposes of computation of eligible profits for sub-clause(iv) to explanation-1 to sec.115JB(2) of the I.T. Act, 1961- assessee is eligible to reduce profits as computed u/s.80HHC(3) for the purposes of computation of book profits u/s. 115JB – the AO is directed to reduce profits as computed u/s. 80HHC(3) after giving effect to the order for the purpose of sub-clause(iv) to explanation-1 to sec.115JB – Decided against revenue.
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