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2014 (1) TMI 174 - AT - Income TaxApplication of Minimum Alternate Tax u/s 115JB of the Act – Claim of deduction u/s 80-IC of the Act – Held that:- The AO can compute the total income or loss, after making adjustment of incorrect claim, if such incorrect claim is apparent from any information in the return – Following Apollo Tyres Ltd. Versus Commissioner of Income Tax [2002 (5) TMI 5 - SUPREME Court] - while computing the book profits of a company u/s 115J under the Act, the AO has only the power of examining whether books of accounts are certified by the authorities under the Companies Act and there after as the limited power of making increase or decrease of certain items specifically provided for in the Explanation to S.115J. A deduction u/s 80-IC, is not an item of adjustment in Explanation I to S.115 JB - While so, to claim reduction of the amount deductible u/s 80-IC, while computing book profits u/s 115 JB, is not in accordance with the apparent reading of the provisions of S.115 JB - such a claim is an incorrect claim and this is apparent from information in the return as defined in the Explanation (a) to S.143(1)(a)(ii) of the Act - the AO is correct in making adjustment u/s 143(1) - the return is processed by a computer or by the Officer himself, does not make a difference, computerized processing is only an aid to the AO - computation of book profits u/s 115 JB of the Act is not done in accordance with the provisions of the Act, and when an incorrect claim of reduction from book profits of amount which the assessee is eligible u/s 80 IC is made, it is an incorrect claim apparent from the record, which can be adjusted u/s 143(1) of the Act – Decided in favour of revenue.
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