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2013 (11) TMI 112 - AT - Income TaxDeduction u/s 80HHC – Computation of book profit u/s 115JB - Held that:- Following Ajanta Pharma Ltd. vs. CIT (SC) [2010 (9) TMI 8 - SUPREME COURT] – The amount of profit eligible for deduction u/s 80HHC has to be reduced and the computation has to be made on the basis of book profit and not as per regular provisions of the Act - Relief will be computed u/s 80HHC (3)/(3A), subject to the conditions under sub-sections (4) and (4A) of that Section. The condition is only that relief should be certified by the Chartered Accountant. Such condition is not a qualifying condition, but, is a compliance condition. In accordance with the Section 115JB it has been clearly stated that relief will be computed u/s 80HHC (3)/(3A), subject to the conditions under sub-sections (4) and (4A) of that Section. The condition is only that relief should be certified by the Chartered Accountant - one cannot rely upon the last sentence in clause (iv) of Explanation to section 115JB (subject to the conditions specified in sub-section (4) and (4A) of that section) to obliterate the difference between “eligibility” and “deductibility” of profits - Decided against Revenue.
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