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2021 (12) TMI 564 - HC - Income TaxEligibility of profits and deductibility of profits arising under Section 115JB - whether the assessee is entitled to claim deduction under Section 80HHC - HELD THAT - As per reported judgments in Ajanta Pharma Ltd. v. Commissioner of Income-Tax 2010 (9) TMI 8 - SUPREME COURT order of the Supreme Court in Kerala Chemicals and Proteins Ltd v. Commissioner of Income Tax 2012 (9) TMI 1214 - SUPREME COURT AND BHARI INFORMATION TECH SYSTEMS (P) LTD. 2011 (10) TMI 19 - SUPREME COURT to state that the issue is concluded by these judgments in favour of assessee. Depreciation at 40% on commercial vehicles used for assessee's own business - whether the percentage of depreciation accepted by the CIT (Appeals) and Tribunal at 40% is correct or not? - HELD THAT - Old appendix I applicable for the Assessment Year 2003-04 deals with different slabs of depreciation applicable to vehicles used for different purposes. After juxtaposing the schedule with the nature of activity carried on by the assessee, we are of the view that the finding of fact recorded by the Tribunal is in accordance with the said schedule and the substantial question of law in the facts and circumstances of this case does not arise for consideration under Section 260A of the Act.
Issues:
1. Eligibility of profits and deductibility of profits under Section 115JB of the Income Tax Act. 2. Entitlement to claim deduction under Section 80HHC. 3. Percentage of depreciation on commercial vehicles used for business purposes. Eligibility of Profits and Deductibility of Profits under Section 115JB: The case involved an appeal by the Revenue against the order of the Income Tax Appellate Tribunal regarding the disallowance of the claim of the assessee under Section 80HHC of the Income Tax Act. The key issue was whether the assessee was entitled to claim deduction under Section 80HHC for a specific amount. The Court referred to various judgments, including Ajanta Pharma Ltd. and Bhari Information Tech. Sys. P. Ltd., to support the assessee's position. The Court concluded that the issue was covered in favor of the assessee based on the principles laid down in the referenced judgments. Entitlement to Claim Deduction under Section 80HHC: The first substantial question of law raised in the appeal focused on the eligibility of profits and deductibility of profits under Section 115JB of the Act. The Court analyzed whether the assessee was entitled to claim deduction under Section 80HHC for a specific amount. The Court referred to relevant judgments and concluded that the issue was in favor of the assessee based on the principles established in the cited cases. Percentage of Depreciation on Commercial Vehicles: The second substantial question of law revolved around the percentage of depreciation on commercial vehicles used for the assessee's business. The Tribunal's order and the interpretation of the Andhra Pradesh High Court's judgment were crucial in determining the depreciation percentage. The Court found that the Tribunal's decision was appropriate based on the schedule of depreciation applicable to vehicles used for different purposes as per the old appendix I for the Assessment Year 2003-04. The Court held that the substantial question of law did not arise for consideration under Section 260A of the Act, ultimately dismissing the appeal against the Revenue and in favor of the assessee.
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