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2018 (7) TMI 2082 - AT - Income TaxMAT computation - whether deduction u/s 80IB(10) of the Act is not allowable while computing book profit u/s 115JB - HELD THAT:- There should not be any dispute that the methodology provided in sec. 115JB for computing “book Profit” did not prescribe for reducing the amount eligible for deduction u/s 80IB(10) of the Act from the Net Profit. We also notice that the assessee has considered sec. 80IB(10) of the Act as an “exemption” provision. It is well settled proposition that the deductions prescribed in Chapter VIA are “deductions” provision and they shall be allowed only if the Gross Total income is in positive figure. A deduction for a particular type of income is available only if it forms part of Gross Total Income. Thus, the concerned income is taken as part of Gross Total income and thereafter, deductions are allowed under Chapter VIA of the Act. Certain incomes are totally exempt from tax and such type of income does not enter into the “Gross Total income” at all. Hence the deduction allowed u/s 80IB(10) falls under the category of “deduction” provision and not exemption provision as contended by the assessee. The provisions of sec. 115JB prescribes exclusion of certain “exempted” income and do not provide deduction given u/s 80IB(10) of the Act. The Hon’ble Karnataka High Court has made this point very clear in the case of in the case of Sankhla Polymers P. Ltd. [2013 (6) TMI 310 - KARNATAKA HIGH COURT] as held that provisions of Section 115JB would apply to the assessee who is claiming deduction under Section 80IB of the Act and deduction under Section 80IB(10) of the Act cannot be allowed while computing book profit under Section 115JB The contention of the learned A.R. that provisions of Section 80IB(10) would fall under the category of “all other provisions of the Act as mentioned in Section 115JB(5)” is liable to be rejected. Accordingly we hold that the assessee is not entitled to claim deduction u/s 80IB(10) of the Act from the Net profit for the purpose of computing “Book Profit” u/s 115JB of the Act. Accordingly we confirm the order passed by Ld CIT(A) on this issue. Interest under Sections 234B and 234C - HELD THAT:- There is no dispute that interest u/s 234B and 234C is chargeable on the tax payable u/s 115JB of the Act. Only grievance of the assessee is that the interest u/s 234C is charged on the returned income as per the provisions of sec. 234C of the Act. We find merit in the said submissions. Accordingly we restore this issue relating to charging of interest u/s 234C of the Act to the file of the AO.
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