Tribunal affirms CIT(A)'s decision on book profit & deduction claims under sec. 115JB & 80HHC The Tribunal upheld the decision of Ld. CIT (A) to allow the assessee's claim for computation of book profit u/s. 115JB and deduction u/s. 80HHC without ...
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Tribunal affirms CIT(A)'s decision on book profit & deduction claims under sec. 115JB & 80HHC
The Tribunal upheld the decision of Ld. CIT (A) to allow the assessee's claim for computation of book profit u/s. 115JB and deduction u/s. 80HHC without requiring a revised return, as the claims were genuine and aligned with relevant judgments such as in the case of Ajanta Pharma Ltd. The Tribunal emphasized the authority of Appellate Authorities to consider and decide on such claims, leading to the dismissal of the Revenue's appeal.
Issues involved: Appeal against order of Ld. CIT (A)-VI, Ahmedabad for Assessment Year 2004-05 regarding computation of book profit u/s. 115JB and deduction u/s. 80HHC.
Computation of book profit u/s. 115JB: The Revenue contended that the claim of the assessee should not be accepted without filing a revised return of income, citing the judgment of Hon'ble Apex Court in the case of Goetze (India) Ltd. The Ld. CIT (A) directed the AO to re-compute the book profit based on the recent judgment in the case of Ajanta Pharma Ltd. The Tribunal noted that while the AO cannot accept such claims without a revised return, the power of Appellate Authorities to consider and decide on the claim is not curtailed. As the claim was genuine and in line with the judgment in the case of Ajanta Pharma Ltd., the Tribunal upheld the decision of the Ld. CIT (A) to entertain the claim without interference.
Deduction u/s. 80HHC: The assessee had requested that the whole export profit be reduced from the book profit, contrary to restricting the deduction to 30% of profit u/s. 80HHC. The AO relied on the judgment in the case of Goetze (India) Ltd. to reject the claim without a revised return. However, the Ld. CIT (A) followed the judgment in the case of Ajanta Pharma Ltd. and directed the AO to re-compute the book profit accordingly. The Tribunal found no merit in the Revenue's argument, stating that the Appellate Authorities have the power to consider genuine claims even without a revised return, as long as they align with relevant judgments. Consequently, the appeal of the Revenue was dismissed by the Tribunal.
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