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2018 (11) TMI 1659 - HC - Income TaxDisallowance of deduction u/s 80HHC - whether in a case of MAT assessment is to be worked out on the basis of the adjusted books profits under section 115JB of the Income Tax Act, 1961 is valid? - HELD THAT:- Question of law has been answered against the Revenue in the case of Commissioner of Income Tax vs. Bhari Information Technology Systems Private Limited [2011 (10) TMI 19 - SUPREME COURT] we are concerned with Section 80-HHE which is referred to in the Explanation to Section 115-JA, clause (ix). In our view, the judgment of the Special Bench of the Tribunal in Syncome Formulations squarely applies to the present case. Following the view taken by the Special Bench in Syncome Foundations [2007 (3) TMI 288 - ITAT BOMBAY-H] , the Tribunal in the present case came to the conclusion that deduction claimed by the assessee under Section 80- HHE has to be worked out on the basis of adjusted book profit under Section 115-JA and not on the basis of the profits computed under regular provisions of law applicable to computation of profits and gains of business. The judgment of the Tribunal has been upheld by the High Court. - Decided against revenue. Interest u/s 234-D - where it cannot be levied for period prior to 01.06.2003? - HELD THAT:- This question was considered by this Court in the case of CIT vs. M/s.Brakes India Ltd. [2018 (9) TMI 1247 - MADRAS HIGH COURT] holding that the provision, namely, Section 234D of the Act, though was inserted by the Finance Act, 2003 with effect from 01.06.2003, by virtue of the Explanation 2, which was inserted by the Finance Act, 2012 with retrospective effect from 01.06.2003 and will apply to all pending assessments before 01.06.2003. Therefore, the said substantial question of law are answered in favour of the Revenue. In this regard, reference may be made to the decision of the Hon'ble Supreme Court in CIT V. Reliance Energy Limited [2013 (10) TMI 280 - SUPREME COURT] - Decided in favour of revenue.
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