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2018 (8) TMI 1316 - HC - Income TaxValidity of provisions of Section 115JB & 80IC - whether ultravires inasmuch as the benefits granted under Section 80IC cannot be withdrawn by introduction of provisions of Section 115JB. - Counsel for the petitioners has contended that in view of the various decisions of the Supreme Court, the provisions which has been introduced by the legislation by amendment of Section 115JB is discriminatory - deduction in respect of unit situated in Uttarakhand and Himachal Pradesh (special category states) Held that:- Before proceeding with the matter, it will not be out of place to mention that while deciding the vires of statute, we have to look at the object of the special introduction of Section 115JB which falls under Chapter 12B which pertains to special provisions relating to certain companies and keeping in mind, the speech delivered by the Finance Minister referred hereinabove. In our considered opinion, the very purpose of the introduction of this provision is to charge minimum tax on book profit. The distinction between the book profit and the taxable book profit is to match with the minimum tax as shown under the Companies Act by the special Act which was introduced. In that view of the matter, the argument canvassed by counsel for the petitioners though attractive but in our considered opinion, is devoid of any merit and the taxing statute is to be looked into for the purpose of interpretation of the introduction of the Section. In our considered opinion, the very object was to avoid net tax liability by the company through book profit from the company. In that view of the matter, while interpreting the statute, the court has to be very cautious in holding it to be bad in law otherwise the object of introduction of the Section will be frustrated. In our considered opinion, the provisions are in accordance with law and the Government has power to introduce such provisions. Apart from that 80IC deduction which is made is from the gross profit and will apply only on the book profit therefore, Section 115 JB & 80 IC both run in different fields. Decided against the assessee.
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