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2011 (10) TMI 25 - HC - Income TaxCurrent repairs u/s 31- repair of damaged transformer - Held that:- The fact that the transformer existed; that it got damaged and that it was repaired, is not in dispute. The department has not pointed out that the assessee was not using old transformers, but had fixed a new 40 MVA Transformer. ITAT has found that it was because of extensive repairs, consequent to severe damage to an existing business asset. It therefore, concluded that it was case of restoration of its existing capabilities and not a case of acquisition of new asset or obtaining any advantage of enduring nature, which is certainly a different aspect than mere repairs/restoration of capacity. - No substantial question of law arisen - decided in favor of assessee. Computation of MAT (Minimum Alternate Tax) - Deduction u/s 80HHC - Decision of Apex court in Ajanta Pharma Ltd. vrs. Commissioner of Income Tax (2010 -TMI - 77381 - SUPREME COURT) - Held that:- Book profits are to be computed by making deductions as prescribed in clause [a] to [f] of explanation appearing in subsection [2] and by reducing the income as per various heads, as stipulated in clause (i) to (iii) thereof. The provisions of Section 80 HHC are held to operate in different sphere. The Hon'ble Apex Court has noted essential conditions for invoking Section 80 HHC (1) and found that same were conditions of eligibility. Section 80 HHC (3) deals with computation of tax incentive. Section 115 JB, vide clause (iv) exclude eligible profits derived from exports. It is also noted that computation of book profits under section 115 JB is different from normal computation under 1961 Act/computation under Chapter VIA. - Decided in favor of assessee.
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