TMI Blog2009 (4) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 80HHC should be limited to the case of profits of eligible category only - question of law is answered against the revenue and the appeals are dismissed - 6 and 8 of 2009 - - - Dated:- 30-4-2009 - JUSTICE K. RAVIRAJA PANDIAN and JUSTICE M. M. SUNDRESH Mr. J. Narayanasamy, for the appellant. JUDGMENT The Judgment of the Court was delivered by K. RAVIRAJA PANDIAN, J. - The revenue is on appeal against the order of the Income Tax Appellate Tribunal, dated 4.07.2008 passed in ITA Nos.354 and 355 /Mds/2008 relating to the assessment years 2001-02 and 2002-03. 2. The assessment in the case of the assessee for the assessment year 2001-02 was completed under section 143(3) r.w.147 of the I.T. Act on 31.1.2005 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consciously followed a particular view. The Commissioner of Income Tax has recorded a finding that the assessment order clearly showed that the assessing officer had not applied his mind to this issue at all. The Commissioner of Income Tax also rejected the assessee's objection that when two views are possible the Commissioner of Income Tax could not invoke the jurisdiction under Section 263. Thus, the Commissioner of Income Tax set aside the assessments made by the assessing officer for the assessment years 2001-02 and 2002-03 with a direction to redo the assessment after withdrawing the deduction under section 80 HHC wrongly allowed while computing book profit under section 115JB. Aggrieved by the order of the Commissioner of Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the deduction under Section 80 HHC is allowable only on the profits 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 115JA only but not on income computed under Sections 28 to 44 of the Act. The Tribunal after considering the Judgments of the Supreme Court in the case of Surana Steels P. Ltd., vs. Deputy CIT (1999) 237 ITR 777 and in the case of Apollo Tyres Ltd., vs. CIT (2002) 255 ITR 273 (SC) and analyzing the order impugned found that the provisions of Section 115J are similar to the provisions of Section 115JA of the Act. In order to come to the conclusion the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 section 115H does not empower the Assessing Officer to embark upon a fresh enquiry in regard to the entries made in the books of account of the company. 5. The Assessing Officer is not entitled to touch the profit and loss account prepared by the assessee as per the provisions contained in the Companies Act, while arriving at the book profit under Section 115J and the book profit so arrived at should be the basis for taxation and therefore, the computation under Section 80HHC should be limited to the case of profits of elig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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