Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (11) TMI 1556 - HC - Income TaxDeduction under section 80HHC - whether assessee's business in the purchase and sale of units and its business in the manufacture and sale of tyres constituted one and the same business? - Held that:- Issue covered by the decision of this Court, in favour of the assessee, in C.I.T. v. Appollo Tyres Ltd. [1998 (8) TMI 68 - KERALA HIGH COURT], as confirmed by the Hon'ble Supreme Court [2002 (5) TMI 5 - SUPREME COURT] Amount of deduction u/s 80HHC - whether should be worked out on the basis of book profits even though as per sub-section 3 of section 80 HHC, this has to be allowed on the basis of normal profits - Held that:- Issue covered in favour of the assessee by the decision of the Hon'ble Supreme Court in C.I.T. v. Bhari Information Tech. Sys.P.Ltd. [2011 (10) TMI 19 - SUPREME COURT OF INDIA ]. MAT computation - revaluation reserve account for adjusting the depreciation should be allowed as deduction while computing the book profits - Held that:- The assessee in the previous assessment year on a revaluation of its assets, credited an amount to the revaluation reserve account. In the current assessment year, the assessee debited ₹ 2,72,43,385/- from the revaluation reserve account and adjusted the depreciation arising in the said year. In fact, this should have been shown in the profit and loss accounts as a profit, which the assessee did not; but, however, adjusted to depreciation, which has the same effect. In fact, if the assessee had added on the said amounts to the profit, then under Section 115J [Minimum Alternate Tax (MAT)] the said amounts would be allowed as deduction under Section 115J. The Assessing Officer, however, found that the profit having not been added on, there could be no deduction claimed. The Assessing Officer, hence, added on the said amounts to the profit for assessment under MAT. The first appellate authority and the Tribunal found that there is no ground to decline such exemption to the assessee, merely for the fact that the same was not shown in the profit. The deduction which is permissible under the Act could not have been disallowed. - Decided in favour of the assessee and against the Revenue.
|