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2019 (8) TMI 735 - HC - Income TaxDepreciation @10% on residential flats used for its employees - flats are situated outside factory premises - CBDT Circular dated 12.12.1996 - HELD THAT:- As in DELHI CLOTH AND GENERAL MILLS CO. LTD. [1965 (2) TMI 110 - PUNJAB HIGH COURT] after referring to the Circular issued by the Board as published in Page 447 of the Income Tax Manual Part III, 10th Edition, held that the premises where the employees were housed, for which, they paid rental the company were in the near vicinity of the mills, that the rental of those premises were fixed and did not change with the change of the occupant, that the rental deducted from the wages of the employee or employees occupying the premises, that those employees were engaged in the main business of the company and their residence in the buildings in dispute was incidental to the main occupation i.e. the carrying on of the business of the company and that in true perspective, those buildings were part of the business equipment of the owner or in other words, it was the business asset of the owner. The above legal position will squarely apply to the facts of the present case. Tribunal rightly held that there was no such restriction in the Circular issued by the Board stating that the benefit would accrue to the assessee only if the residential accommodation is situated within the factory premises. Furthermore, the said Circular does not restrict the benefit only if the accommodation is provided to all the employees, which, obviously, is a business expediency and it is not for the AO to sit in the arm chair of the assessee to decide as what would be best for their employees. Deduction u/s 80HHC - Tribunal allowing deduction on the basis of book profits u/s 115JA and not on the basis of eligible profits under Section 80HHC as per normal computation - HELD THAT:- An identical question was considered by us in the case of CIT Vs. Sundaram Brake Linings [2018 (10) TMI 368 - MADRAS HIGH COURT]. In this decision, we referred to the decision rendered by us in the case of CIT Vs. Bannari Amman Sugars Limited [2018 (7) TMI 1845 - MADRAS HIGH COURT] the decision of the Hon'ble Supreme Court in the case of Ajanta Pharma Ltd. Vs. CIT [2010 (9) TMI 8 - SUPREME COURT] and the decision of the Hon'ble Supreme Court in the case of Bhari Information Technology Systems Private Limited [2011 (10) TMI 19 - SUPREME COURT] and answered the question against the Revenue.
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