2014 (11) TMI 1177

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e facts and in the circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) ought to have held that the provisions of Section 115JB of the Act do not apply to the Appellant by virtue of the provisions of Section 115JB(6) of the Act and consequently, ought to have directed the Learned Assessing Officer not to assess book profits under Section 115JB of the Act for assessment year under reference." 3. Briefly stated, the facts of the case are that during the course of assessment proceedings, the AO noted that while computing the book profits u/s 115JB, the assessee had reduced the deduction claimed u/s. 10A. The AO required the assessee to show cause as to why the said claim should not be disallowed as the prov....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....herefore, the book profit of the SEZ unit could not be included while computing book profit under section 115JB for A.Y. 2008-09, despite the fact that clause (f) of Explanation 1 to section 115JB(2) has been amended to apply the provisions of MAT to units which are entitled to deduction under section 10A. At this juncture, we think it proper to reproduce the findings of the Tribunal given in the case of Genesys International Corporation Ltd. (supra), which read as under: "We have considered submissions of ld representatives of parties and orders of authorities below. We have also carefully considered the relevant provisions of the Act. There is no dispute to the fact that assessee's unit in Mumbai is located in SEZ. Section 10A pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome accrued or arisen on or after 01.04.2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the case may be. Hence, income of units located SEZ will not be included while computing book profit for the purpose of MAT as per section 115JB(6) of the Act. In view of above, we are of the considered view that there is merit in the contention of ld A.R. that irrespective of the fact that amendment has been made in clause (f) of Explanation (1) to section 115JB(2) of the Act to apply the provisions of MAT in respect of units which are entitled to deduction u/s.10A or 10B but the units which are in SEZ will continue to get benefits from the applicability of provisions of ....