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TMI Blog2009 (4) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... is 2000-2001. " Whether, in the facts and circumstances of the case, the Tribunal was right in allowing deduction under Section 80HHC on the basis of book profits under Section 115JA even though the eligible profits under Section 80HHC was Nil as per normal computation ?" 2. The facts as culled out from the statement of facts in the memorandum of grounds are as follows: The assessee company is engaged in the manufacture of leather products. For the assessment year 2000-01, the assessment was made on book profit basis. The assessee claimed benefit under Section 115JA of the Income Tax Act, 1961 (in short " the Act"). The assessee claimed that the benefit under Section 80HHC of the Act should be calculated taking the book profit as profits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king into consideration the ratio laid down by the Apex Court in SURANA STEELS P. LTD., VS. DEPUTY COMMISSIONER OF INCOME TAX reported in (1999) 237 ITR 777 and in APOLLO TYRES LTD., VS. COMMISSIONER OF INCOME TAX reported in (2002) 255 ITR 273 (SC), this Court has held as follows:- " 4. We are not able to subscribe our view to the grounds taken in the appeal that the deduction under Section 80HHC is allowable only on the profit and gains arrived at under Sections 28 to 44B of the Income Tax Act. In the case on hand, it is the stand of the assessee that the relief under Section 80HHC should be based on the profit ascertained under Section 1 15JA only but not on income computed under Section 28 to 44 of the Act. The Tribunal after consideri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so looking into the accounts of the company, the assessing officer has to accept the authenticity of the accounts with reference to the provisions of the Companies Act, which obligate the company to maintain its accounts in a manner provided by that Act and the same to be scrutinised and certified by statutory auditors and approved by the company in the general meeting and thereafter to be filed before the Registrar of Companies, who has a statutory obligation also to examine and be satisfied that the accounts of the Company are maintained in accordance with the requirements of the Companies Act. Sub-section (1A) of Section115J does not empower the assessing officer to embark upon a fresh enquiry in regard to the entries made in the books o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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