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2015 (7) TMI 238 - AT - Income TaxDisallowance of loss under section 115JB(2)(iii) as computed by the assessee in its return of income - CIT(A) directing allowed commission - Held that:- CIT(A) directed the AO to allow deduction under section 115JB(3)(iii) as per the working made by the assessee. However, we find that the working made by the assessee has not been brought on record either by any of the lower authorities, or by either of the parties before us. From the order of the CIT(A), it is not clear as to how the CIT(A) has verified the working made by the assessee. We, therefore, set aside the orders of the lower authorities, and remit the matter back to the file of CIT(A) for adjudicating the issue afresh by passing a speaking order.- Decided in favour of revenue for statistical purposes. Re computation of the deduction under section 80HHC for the purpose of deduction under section 115JB(2)(iv) on the book profit declared by the assessee - Held that:- The Mumbai Special Bench of ITAT in the case of DCIT vs. Syncome Formulations (I) Ltd., [2007 (3) TMI 288 - ITAT BOMBAY-H ] held that the deduction under section 80HHC in a case of MAT assessment is to be worked out on the basis of the adjusted book profits and not on the basis of the profit computed under the regular provisions of law applicable to the computation of profit and gains of business or profession. However, subsequently, Hon'ble Bombay High Court in their aforesaid decision in CIT Vs. Ajanta Pharma Ltd.,(2009 (5) TMI 7 - BOMBAY HIGH COURT) overruled the decision in the case of Syncome Formulations (I) Ltd.(supra). On further appeal by the assessee, Hon'ble Apex Court in the case Ajanta Pharma Ltd. vs. CIT, [2010 (9) TMI 8 - SUPREME COURT] while referring to the relevant provisions of sec. 115JB and sec. 80HHC of the Act upheld the view taken by the Special Bench in the case of Syncome Formulations (I) Ltd.(supra). Thus CIT(A) did not erred in directing to recomputed the deduction under section 80HHC of the Act for the purpose of deduction under section 115JB(2)(iv) on the book profit declared by the assessee.- Decided against revenue.
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