TaxTMI 
TaxTMI 
2009 (12) TMI 579
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....0-IB. 3. The assessee is a company engaged in the manufacture of ball pens, fountain pens, roller pens, nibs, refills and other similar writing materials and stationery items. The manufacturing unit of the assessee company is located in the Union Territory of Daman which is declared as a backward area for the purpose of IT Act and as such the assessee is eligible for deduction under s. 80-IB. The assessee company being an exporter is eligible to claim deduction under s. 80HHC as well. 4. In the course of the assessment proceedings, the AO held that the assessee has claimed deductions both under s. 80HHC and s. 80-IB, which could not be allowed in the light of the provisions of law contained in s. 80-IA(9). When this matter was brought....
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.... Revenue. 8, At the outset itself, the learned counsel for the assessee has fairly conceded that the first ground regarding the impost of depreciation for the purpose of computing profits eligible for deduction under s. 80-IB has to be decided against the assessee. Full Bench of the Hon'ble Bombay High Court in the case of Plastiblends India Ltd. vs. Asstt. CIT (2009) 227 CTR (Bom)(FB) 1 : (2009) 30 DTR (Bom)(FB) 194 : (2009) 318 ITR 352 (Bom)(FB) has held that profits cannot be enhanced by the device of disclaiming the current depreciation in computing the benefits available to the assessee under s. 80-IA. As the issue is squarely covered by the above judgment of Hon'ble Bombay High Court, we hold that the first ground raised by the ass....
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....d Addl. CIT further explained that the fine law depicted in s. 115J and s. 115JB are different and the provisions contained in s. 115JB make it clear that an assessee is not entitled for claiming simultaneous deductions, even in an assessment under the MAT scheme. 11. We heard both sides in detail. Sec. 80HHC provides for deduction to an assessee in respect of his export business. Sec. 80-IB provides deduction to an assessee in respect of its profit derived from an industrial undertaking situated in a notified backward area. 12. While an assessee is claiming deduction under both the above provisions, the question that arose for consideration was whether simultaneous deduction could be allowed under both the above provisions without on....
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....make a reference to the reliance made by the learned counsel for the assessee on the decision of Tribunal, Mumbai Special Bench decision in the case of Syncome Formulations (I) Ltd. In the said case, the exact question was, what is the profit to be considered for computing the deduction under s. 80HHC; whether the deduction has to be made with reference to the profits computed under the normal provisions of law or with reference to the book profits arrived at under s. 115JA. The Special Bench held that once the book profit is adopted for the purpose of assessment, the deduction under s. 80HHC also has to be allowed with reference to the said book profit. Therefore, the said decision relied on by the learned counsel for the assessee does not....