2012 (1) TMI 227 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against order related to computation of book profits u/s 115JB and deduction u/s 80HHC for assessment year 2002-03.

The appeal was filed by the Revenue against the order of the Commissioner (Appeals)-IX, Mumbai, regarding the computation of book profits u/s 115JB and deduction u/s 80HHC for the assessment year 2002-03. The Tribunal initially dismissed the ground raised by the assessee but later recalled it based on a Supreme Court judgment. The appeal before the Tribunal was limited to adjudicating a specific ground, and both parties agreed that the issue was covered in favor of the assessee by a judgment of the Larger Bench of the Supreme Court. The Tribunal upheld that the deduction claimed u/s 80HHC had to be worked out based on adjusted book profit u/s 115JA. Consequently, the ground raised by the Revenue was dismissed, and the Revenue's appeal was ultimately dismissed.

In conclusion, the Tribunal's decision was based on the interpretation of relevant sections of the Income Tax Act and the precedent set by the Supreme Court. The judgment highlighted the importance of correctly applying the provisions of the law in determining book profits and allowable deductions, ensuring consistency and adherence to legal principles in tax assessments.