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TMI Blog2011 (1) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... fits" u/s 115JB of the Act?" 2. In Tax Appeal No.1077 of 2009, the assessment year is 2005-06 and the corresponding accounting period is the previous year ending on 31st March, 2005. In Tax Appeal No.1078 of 2009, the assessment year is 2004-05 and the corresponding accounting period is the previous year ending on 31st March, 2004. 3. The facts of the case are that the assessee is a public limited company and is engaged in the business of Building and Development of Housing Projects. The assessee while computing the book profit under section 115JB of the Act reduced the deduction available under section 80IB(10) of the Act, as in the opinion of the assessee the exempted profit under section 80IB(10) of the Act cannot form part of the book profit in view of the provisions of sub-section (5) of section 115JB of the Act. The Assessing Officer did not accept the say of the assessee and worked out the book profit under section 115JB of the Act at Rs.9,91,52,822/-. The assessee failed in its appeals before Commissioner (Appeals) as well as in second appeals before the Tribunal. 4. Heard Mr. S.N. Soparkar, learned senior advocate appearing on behalf of the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preparing the annual accounts including profit and loss account,- (i) the accounting policies; (ii) the accounting standards adopted for preparing such accounts including profit and loss account; (iii) the method and rates adopted for calculating the depreciation, shall be the same as have been adopted for the purpose of preparing such accounts including profit and loss account and laid before the company at its annual general meeting in accordance with the provisions of Section 210 of the Companies Act, 1956: Provided further that where the company has adopted or adopts the financial year under the Companies Act, 1956, which is different from the previous year under this Act,- (i) the accounting policies; (ii) the accounting standards adopted for preparing such accounts including profit and loss account; (iii) the method and rates adopted for calculating the depreciation, shall correspond to the accounting policies, accounting standards and the method and rates for calculating the depreciation which have been adopted for preparing such accounts including profit and loss account for such financial year or part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; (b) the provisions of this clause shall not apply if the amount of loss brought forward or unabsorbed depreciation, is nil ; or (iv) the amount of profits eligible for deduction under Section 80-HHC, computed under clause (a) or clause (b) or clause (c) of sub-section (3) or sub-section (3-A), as the case may be, of that section, and subject to the conditions specified in that section; or (v) the amount of profits eligible for deduction under Section 80-HHE computed under sub-section (3) or sub-section (3-A), as the case may be, of that section, and subject to the conditions specified in that section; or (vi) the amount of profits eligible for deduction under Section 80-HHF computed under sub-section (3) of that section, and subject to the conditions specified in that section; or (vii) the amount of profits of sick industrial company for the assessment year commencing on and from the assessment year relevant to the previous year in which the said company has become a sick industrial company under sub-section (1) of Section 17 of the Sick Industrial Companies (Special Provisions) Act, 1985 and ending with the assessment year during which the enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the categories enumerated therein. Thus, the intention of the legislature is clear. Where the legislature wanted to grant benefit of deduction, the said item finds a specific mention in relation to the amounts by which the net profit is to be reduced while computing the net profit. 8. Insofar as sub-section (5) of section 115JB of the Act on which reliance has been placed on behalf of the appellant is concerned, the same provides that "S ave as otherwise provided in the section, all other provisions of the Act shall apply to every assessee, being a company, mentioned in the section". Thus, sub-section (5) of section 115JB of the Act opens with the words "save as otherwise provided in this section" which means that if section 115JB of the Act provides otherwise, the other provisions of the Act would not be applicable. As noticed hereinabove, insofar as computation of book profit is concerned, the same is specifically provided for in section 115JB of the Act. Hence, in the light of the provisions of sub-section (5) of section 115JB, the other provisions of the Act except as provided in the said section would not be applicable while computing book profit for the purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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