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2019 (12) TMI 658 - AT - Income TaxDeduction u/s 80IA - HELD THAT:- There is no dispute at the end of Revenue as to the eligibility of assessee fulfilling the condition needed to claim deduction u/s. 80IA(4). We therefore respectfully following the judgment of Jurisdictional High Court in the case of Gujarat Alkalies and Chemicals Ltd. [2016 (10) TMI 1111 - GUJARAT HIGH COURT] as well as the decision of the Tribunal in the case of assessee for A.Y. 2006-07 & 2007-08 are of the considered view that assessee has rightly computed the deduction u/s. 80IA(4) r.w.t 80IA(8) by calculating the market value of the power generated by the captive power plant by adopting the rates charged by the Gujarat Electricity Board to its customers. We accordingly set aside the findings of lower authorities and allow the respective grounds of appeal of assessee. MAT computation - not reducing the provision written back in the profit and loss account from the book profit under section 115JB - HELD THAT:- A plain reading of the above provision reveals that the amount of provision written back shall be reduced from the book profit if the same has suffered the tax under MAT provision in the earlier years. Apparently, it appears that there is no ambiguity that the provisions pertaining to the assessment year 2002-03 and 2003-04 were not suffered to tax under the provisions of section 115 JB . However, the question arises where the assessee was subject to tax under normal computation of income even after giving the effect of such provision under MAT liability. In such a situation, we are of the view that it shall be deemed as if such provision has suffered to tax under MAT provision and the assessee shall get benefit in the year in which it is written back in the profit and loss account while determining the income under MAT provision of the Act. See M/S. GUJARAT INDUSTRIAL INVESTMENT CORP. LTD. AND VICE-VERSA. [2018 (9) TMI 1924 - ITAT AHMEDABAD] - Impugned provision written back needs to be reduced from the book profit as claimed by the assessee. Accordingly we reverse the order of the learned CIT (A) and direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed.
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