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2022 (5) TMI 1262 - AT - Income TaxMAT computation u/s 115JB - Inclusion/exclusion of income relating to SEZ/STPI while computing book profit - HELD THAT:- We are of the view that, there is merit in the contention of the Ld.AR that, irrespective of the fact that, amendment has been made in clause (f) of Explanation (1) to section 115JB(2) of the Act, to apply the provisions of MAT in respect of units which are entitled to deduction under section 10A or 10B, the units which are in SEZ will continue to get benefits from the applicability of provisions of MAT in view of sub-section(6) of the Act. We note that section 115JB (6) does not refer section 10A or section 10AA, but, it states that, provisions of section 115JB will not apply to the income accrued or arisen on or after 1.4.2005 from any business carried on in an unit located in SEZ. Hence, we are of the view that, the unit in SEZ will be covered by sub-section(6) to section 115JB of the Act, irrespective of the fact that, those units were claiming deduction u/s.10A of the Act. We also observe that benefit given to SEZ unit from the applicability of provisions of section 115JB has been withdrawn by the Finance Act, 2011 by inserting a proviso to section 115JB(6) The year under consideration is A.Y: 2005-06 and therefore this benefit is available to assessee. We therefore hold that, authorities below were not justified to include the book profit in respect of SEZ/STPI unit of the assessee, while computing book profit u/s.115JB of the Act for year under consideration. Therefore, we reverse the orders of authorities below by holding that income relating to SEZ/STPI unit is to be excluded while computing book profit u/s.115JB of the Act for assessment year 2005-06. - Decided in favour of assessee.
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