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2010 (11) TMI 752 - AT - Income TaxRectification of mistakes - in the order of rectification, the DCIT reduced the relief in respect of export profits deductible in computing the Book profits u/s 115JB, to 70% of the eligible deduction by invoking sub section (1B) of Section 80HHC - jurisdiction of the DCIT to make the correction in an order of rectification u/s 154 - Held that:- As the issue involved extensive examination and analysis of the provision of the Act. Needless to add that such involved and complicated interpretation of the statute cannot be carried out by an order of rectification u/s 154. Therefore we hold that the DCIT erred in recomputing the Book profits by reworking the deduction under explanation (iv) to that section in an order of rectification u/s 154. Issue stands covered in favour of the assessee by the decision of Ajantha Pharma Ltd vs CIT (2010 (9) TMI 8 - SUPREME COURT) wherein keeping in mind upward and downward adjustments and if so read it becomes clear that clause (iv) covers full export profits of 100 percent, as eligible profits and that the same cannot be reduced to 80 percent by relying on section 80HHC (1B). In favour of assessee.
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