2018 (7) TMI 1628 - HC - Income Tax

Denying deduction u/s. 80HHC - reducing the export profit for the year by amount of brought forward unabsorbed depreciation and unabsorbed losses - Held that - This issue stands concluded against the appellant-assessee and in favour of the respondent-Revenue by the decision of the Apex Court in IPCA Laboratory Ltd. vs. Deputy Commissioner of Income-Tax 2004 (3) TMI 9 - SUPREME COURT . Computing book profit u/s 115JB - whether appellant is entitled to reduce the net profit as per Profit and loss Account by the profit eligible for deduction u/s. 80HHC computed with reference to book profit (after adjustments) as per explanation (iv) to section 115JB? - Held that - This issue is no longer resintegra as it stands concluded in favour of the appellant-assessee by the decision of the Apex Court in Commissioner of Income-Tax V/s. Bhari Information Technology Systems P. Ltd, 2011 (10) TMI 19 - SUPREME COURT OF INDIA Computing book profit u/s. 115JB the deduction should be of 100% of the amount calculated u/s. 80HHC(3)- Held that - This issue is also no longer res-integra. This is so as it stands concluded by the decision of the Apex Court in Ajanta Pharma Ltd. vs. CIT 2010 (9) TMI 8 - SUPREME COURT in favour of the appellant-assessee and against the Respondent-Revenue. Levy of interest u/s. 234B, 234C and 234D on income taxes payable on the deemed income u/s. 115JB - Held that - his issue stands concluded against the appellant-assessee and in favour of the respondent-Revenue. This, by the decision of this Court in Joint Commissioner of Income-Tax v. Rolta India Ltd. 2011 (1) TMI 5 - SUPREME COURT OF INDIA

Summary

Issues:
Challenge to order of Income-Tax Appellate Tribunal for Assessment Year 2001-02; Deduction under Section 80HHC; Computation of book profit under Section 115JB; Interest levy under sections 234B, 234C, and 234D.

Analysis:

1. Deduction under Section 80HHC:
The appellant challenged the denial of deduction under Section 80HHC by the Income-Tax Appellate Tribunal. The court noted that the issue was settled against the appellant by the decision of the Apex Court in IPCA Laboratory Ltd. vs. Deputy Commissioner of Income-Tax. Consequently, the court answered this question in favor of the respondent-Revenue and against the appellant-assessee.

2. Computation of Book Profit under Section 115JB:
The appellant raised a question regarding the entitlement to reduce net profit as per Profit and Loss Account by the profit eligible for deduction under Section 80HHC while computing book profit under Section 115JB. The court observed that this issue was settled in favor of the appellant by the decision of the Apex Court in Commissioner of Income-Tax V/s. Bhari Information Technology Systems P. Ltd. The court also highlighted that a previous decision of the court in CIT V/s. Al-Kabeer Exports Ltd. was in favor of the Revenue but was overturned by the Supreme Court in Al-Kabeer Exports Ltd. Vs. CIT. Consequently, the court answered this question in favor of the appellant-assessee and against the respondent-Revenue.

3. Interest Levy under Sections 234B, 234C, and 234D:
The court addressed the issue of confirming the levy of interest under sections 234B, 234C, and 234D on income taxes payable on the deemed income under Section 115JB of the Act. The court noted that this issue was settled against the appellant by the decision of the Court in Joint Commissioner of Income-Tax v. Rolta India Ltd. Therefore, the court answered this question in favor of the respondent-Revenue and against the appellant-assessee.

Conclusion:
The High Court disposed of the appeal by answering the substantial questions of law as follows: Question I in favor of the respondent-Revenue, Question II in favor of the appellant-assessee, Question III in favor of the appellant-assessee, and Question IV in favor of the respondent-Revenue.