TaxTMI 
TaxTMI 
2024 (2) TMI 489
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.... of the assessee the main application of appeal was recalled and fixed for the hearing before the Bench. By perusing the order, we observed that the assessee has taken the additional ground during the hearing before the ITAT. But the Tribunal has escaped attention and adjudication of the additional ground was not done during dispensing of final order. The assessee has filed MA before the ITAT and against the order of MAthe appeal is recalled. In fact, the assessee has claimed deduction u/s 80HHC amounting to Rs. 20,35,75,401/- out of book profit. The assessee claimed deduction after claiming of brought forward loss and unabsorbed depreciation and the assessee has reduced profit to nil. The revenue has disagreed with the assessee's computation and claim was rejected by the Ld. AO. 3. Aggrieved assessee, filed an appeal before the Ld. CIT(A) and took a plea as covered matter in the case of CIT vs. Bhari Information Technology Systems Pvt. Ltd. in [2012] 17 taxmann.com 62 (SC), the order of the Special Bench of Mumbai ITAT in the case of DCIT vs. Syncome Formations India Ltd. [2007] 106 ITD 193 (Mum). The assessee claimed that the deduction u/s 80HHC is eligible after obtaining the....
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....AO to allow deduction of lower of the amount of brought forward loss or unabsorbed depreciation as per books of accounts as per the provisions of clause (iii) to Explanation 1 of Section 115JB(2) of the Act. 12.2 On the facts and in the circumstances of the case and in law, the learned AO be directed to compute the brought forward business loss and unabsorbed depreciation available in FY 2003-04 after setting off the book profits of FY 2002-03 amounting to Rs. 17,46,408 in the proportion of brought forward business loss of Rs. 4,64,058 and unabsorbed depreciation of Rs. 15,37,307 available in FY 2002-03 as per books of accounts. Detailed calculations of the same are enclosed as Annexure 2. Ground 13: Interest under section 244A of the Act On the facts and in the circumstances of the case, Appellant requests for appropriate direction to compute interest under section 244A of the Act on the amount of refund computed pursuant to the order of the Hon'ble ITAT against the captioned appeal. The Appellant craves leave to add to, alter, delete or modify the above grounds of appeal." 5. The Ld. A.R further placed that Ld. CIT(A) has passed the order after a....
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....d not otherwise. As in the case, the Gross Total Income after setting off the unabsorbed Depreciation and business loss will be NIL. Therefore, the claim of the assessee company for reduction from amount of Book Profit of Rs, 2,03,75,401/- u/s. 80HHC is disallowed. Further, it is seen that the assessee company has not added back provision of Wealth Tax u/s 40(a)(ia) amounting to Rs. 12,36,043/-. To arrive at book profit for MAT u/s, 115JB, the same has been taken into consideration for computation of Book Profit. 2. On the other hand, it has been argued by the Ld. A.Rs for the appellant-company during the appeal that: a. The issue has been recently settled by the decision of Special Bench of the Hon'ble Mumbai Tribunal in the case of DCIT vs. Syncome Formulations (I) Limited 106 ITD 193 (2007) (Mum.) wherein it has been held that for computing the book profits, the deduction under section 80HHC of the Act had to be worked out by considering adjusted book profits as per section 1151, section 115JA and section 115JB of the Act. The appellant has also enclosed a copy of the said decision, and relyingo the same has filed e an additional, ground with a prayer to di....
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....utation there was no profit after carry forward loss of earlier years, deduction under section 80HHE for computing book profit under section 1153A was not admissible - In appeal. Commissioner (Appeals) upheld order of Assessing Officer - However, Tribunal held matter in favour of assessee - Tribunal came to conclusion that deduction claimed under section 80HHE had to be worked out Onbasis of adjusted book profit under section 115.3A and not on basis of profits computed under regular provisions of law applicable to, computation of profits and gains of business - Judgment of Tribunal had been upheld by High Court -Whether there was no reason to interfere with impugned judgment - Held, yes [In favour of assessee] CASE REVIEW CIT v. Bhari Information Technology Systems (P.) Ltd. [2010] 328 ITR 380 (Mad,) affirmed. Dy. CIT v. Syncome Formulations (I) Ltd. [2007] 106 ITD 193 / 13 SOT 414 (Mum.) (SB)approved. CASES REFERRED TO Dy. CIT v. Syncome Formulations (I) Ltd. [2007] 106 ITD 193 / 13 SOT 414 (Mum.) (SB) (para 3). Bishwajit Bhattacharya, Arijit Prasad, Vikas Malhotra, Ajay Singh, Judy James, Ms. N. Swarup and B.V. Bala ram Das fo....
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....C (8QHHE in the present case) is operational, It becomes clear that computation for the deduction under those sections needs to be worked out on the basis of the adjusted book profit. [See : para 61 of the judgment of the Tribunal in Syncome Formulations (supra)]. 4. In the present case we are concerned with s. 80HHE which is referredtp in the Explanation to s, 115JA, d. (lx). In our view, the judgment of the Special Bench of the Tribunal in Syncome Formulations (I) Ltd., (supra) squarely applies to the present case. Following the view taken by the Special Bench in Syncome Formulations (I) Ltd. (supra), the Tribunal in the present case came to the conclusion that Reduction claimed by the assessee under s. 80HHE has to be worked out on the basis of adjusted book profit under s. 115JA and not on the basis of the profits computed under regular provisions of law applicable to computation of profits and gains of business. The judgment of the Tribunal has been upheld by the High Court. 5. We see no reason to interfere with .the impugned judgment. We agree with the view taken by the Special Bench of the Tribunal in the case of Syncome Formulations (I) Ltd. [supra) vide p....