TaxTMI 
TaxTMI 
2009 (4) TMI 35
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....ar 1998-99 on 30.11.1998 admitting a total income of Rs.1,29,70,280/- arrived at under Section 115JA of the Income Tax Act. The return was processed on 04.12.1998 and a prima-facie adjustment relating to deduction under Section 80HHC was made by the Assessing Officer. That order of assessment was questioned by the assessee before the Commissioner of Income Tax (Appeals), who by his order dated 12.06.2002 directed the Assessing Officer to re-determine the issue on the ground that prima-facie adjustment relating to deduction under Section 80HHC made by the Assessing Officer when the return is filed under Section 115JA is not correct. The Assessing Officer re-determined the income at Rs.1,29,70,280/- by his order dated 12.07.2002 by giving eff....
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....been rendered in the context of clause (iii) of Explanation to section 115JA of the Act, has no application while working out deduction in terms of clause (vii) of Explanation to section 115JA of the Act. By not doing so, the Assessing Officer had worked out and had allowed deduction u/s 80-HHC to the assessee in excess of what was admissible. In such circumstances, I came to the view that the re-assessment order dated 27.02.2004 made by the Assessing Officer was erroneous in so far as it was prejudicial to the interest of revenue". 5. The assessee taken the matter on appeal to the Tribunal. The Tribunal has set aside the order of the Commissioner on the premise that when two views are possible and the Assessing Officer has taken o....
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....K.Raviraja Pandian,J) was a party in the case of Commissioner of Income Tax vs. Rajanikant Schnelder and Associates P. Ltd., reported in 302 ITR 22) has observed as follows:- "4. We are not able to subscribe our view to the grounds taken in the appeal that 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 ....
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....es Act, which obligate the company to maintain its accounts in a manner provided by that Act and the same to be scrutinized and certified by the 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 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 co....