2009 (11) TMI 76

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t, amounting to Rs. 4,99,794 to work out the book profit as per the provisions of s. 115JB of IT Act. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) was not correct in directing to allow deduction under s. 43B r/w s. 36(1)(va) of IT Act in respect of payments of the employee's contribution to the PF and to the State insurance corporation amounting to Rs. 14,48,531 if the same is paid within the grace period of five years. 3. On the facts and in the circumstances of the case and in law, the learned CIT(A) was not correct in directing to delete interest charged under s. 234B of IT Act on MAT determined under s. 115B of IT Act." 2. We shall first take up ground Nos. 2 and 3. Vide ground No. 2 the R....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fully following the jurisdictional High Court judgment cited we uphold the order of the learned CIT(A) and reject ground No. 3 of the Revenue. 6. Facts concerning ground No. 1 are stated in brief. Under the normal provisions of the IT Act there was no taxable income and hence the AO determined the book profit under s. 115JB of the Act. The case of the assessee was that deduction under s. 80HHC of the Act is allowable even while computing the book profit under s. 115JB of the Act. The AO having rejected the contention of the assessee, an appeal was preferred before the CIT(A) contending, inter alia, that the provisions of s. 115JB used the expression the 'amount of profit' and on a similar expression used in ss. 115J and 115JA of the Act,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....i)(SB) 105 : (2007) 106 ITD 193 (Mumbai)(SB) wherein this very issue was decided in favour of the assessee and against the Revenue by following the decision of the Hon'ble Kerala High Court. It was also submitted that the Tribunal Special Bench has specifically referred to the difference in phraseology between ss. 115JA and 115JB of the Act to take a conscious decision that despite the minor difference in the language employed therein, deduction under s. 80HHC deserves to be computed by taking into consideration 'book profit'. Learned counsel was fair enough to submit that in the case of Asstt. CIT vs. Ajanta Pharma Ltd. [reported at (2008) 118 TTJ (Mumbai) 611 : (2008) 2 DTR (Mumbai)(Trib) 241-Ed.], the Tribunal, 'E' Bench, Mumbai followed....