TMI Blog2009 (12) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... e under s. 80HHC in the context of a MAT assessment – Hence, the quantum of deduction available under s. 80HHC by reducing it with the benefits available under s. 80-IB - The AO is directed to recompute the benefits available to the assessee under s. 80HHC in light of the book profits computed under s. 115JB without making any deduction under s.80-IB. - ITA No. 39/Ahd/2007 - - - Dated:- 4-12-2009 - Member(s) : DR. O. K. NARAYANAN., MAHAVIR SINGH. ORDER-DR. O.K. NARAYANAN, VICE PRESIDENT: This appeal is filed by the assessee. The relevant assessment year is 2003-04. The appeal is directed against the order of the CIT(A) at Valsad dt. 21st Sept., 2006 and arises out of the assessment completed under s. 143(3) of the IT Act, 1961 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first instance. and therefrom deducted the profit under s. 80-IB. He further made a deduction under s. 80HHC. But while computing the deduction under s. 80HHC, the AO has reduced the profit under s. 80-IB from the book profits of the assessee-company, presumably under the influence of s. 80-IA(9). This position was confirmed in first appeal. The assessee is aggrieved and therefore has raised this issue of diluting the book profits under s. 115JB by the amount eligible under s. 80-IB. This issue is raised by the assessee as ground No. 2 in its appeal. 6. The assessee has also raised an alternative ground that s. 80HHC and s. 80-IB are independent provisions and therefore deduction of either of them cannot be excluded. 7. We have hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided in the Explanation given under s. 115JB. He has pointed out that Item (IV) provided in the second part of the Explanation directs to reduce the book profits by the amount of profits eligible for deduction under s. 80HHC. The statute does not provide for any adjustment in respect of the amount of profits eligible for deduction under s. 80-IB. He, therefore submitted that book profits for the purpose of assessment in the present case has to be reduced only by the eligible amount of s. 80HHC and the said amount eligible under s. 80HHC should not further be reduced by the deduction that might be available to the assessee under s. 80-IB. 10. The learned Addl. CIT, on the other hand, submitted that the assessee cannot be given twin adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi rendered in the case of Asstt. CIT vs. Hindustan Mint Agro Products (P) Ltd. (2009) 123 TTJ (Del)(SB) 577 : (2009) 25 DTR (Del)(SB)(Trib) 73 : (2009) 315 ITR 401 (Del)(SB)(AT) in which the five Members Bench has distinguished the judgment of Hon'ble Madras High Court in the case of SCM Creations from the Special Bench decision of Tribunal, Chennai in Rogini Garments case and agreed with the decision of Tribunal, Chennai Special Bench. Therefore, the position of law as of now is that an assessee cannot claim mutually exclusive deduction with reference to the benefits available under ss. 80-IA and 80HHC. This position is equally applicable to a situation arising out of s. 80-IB as well as on the ground of analogy. 13. The issue now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase whether the quantum of book profit could be reduced by the amount of profits eligible for deduction under s. 80-IB while computing the deduction under s. 80HHC. An Explanation regarding adjustments permissible in law provided under s. 115JB takes care of s. 80HHC alone. It does not touch upon the benefits available to an assessee under s. 80-IB. Therefore, once the book profit is arrived at by the assessing authority, the only relevant adjustment permitted is the deduction of benefits available under s. 80HHC. It shows that the benefit available to an assessee under s. 80-IB has no role to play in computing the quantum of deduction available to an assessee under s. 80HHC in the context of a MAT assessment. In the present case, it has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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