2011 (2) TMI 111

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed books profits under Section 115JA of the Income Tax Act, 1961 is valid?"   2. This very question came to be considered by this Court in the decision reported in 302 ITR 22 (CIT v. RAJANIKANT SCHNELDER AND ASSOCIATES P. LTD.) and after detailed analysis, has held as under in paragraph 5.   "The Assessing Officer is not entitled to touch the profit and loss account prepared by the assessee as per the provisions contained in the Companies Act, while arriving at the book profit under Section 115J and the book profit so arrived at should be the basis for taxation and therefore the computation under Section 80HHC should be limited to the case of profits of eligible category only. The Tribunal has also come to the conclusion that in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ining the "book profits" in terms of Section 115JB, the net profits as shown in the profit and loss account have to be reduced by the amount of profits eligible for deduction under Section 80HHC or by the amount of deduction under Section 80HHC?"   The Supreme Court ultimately answered the question in paragraph 10, which reads as under:-   "One of the contentions raised on behalf of the Department was that if clause (iv) of the Explanation to section 115JB is read in entirety including the last line thereof (which reads "subject to the conditions specified in that section"), it becomes clear that the amount of profits eligible for deduction under section 80HHC, computed under clause (a) or clause (b) or clause (c) of sub-section .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... it is a compliance condition. Therefore, one cannot rely upon the last sentence in clause (iv) of Explanation to section 115JB (subject to the conditions specified in sub-sections (4) and (4A) of that section) to obliterate the difference between "eligibility" and "deductibility" of profits as contended on behalf of the Department."   5. Inasmuch as the question of law raised in this appeal, is thus, covered by the decision of this Court in the decision reported in 302 ITR 22 (CIT v. RAJANIKANT SCHNELDER AND ASSOCIATES P. LTD.) as well as that of the Supreme Court reported in 327 ITR 305 (AJANTA PHARMA LTD., v. CIT), there is no scope to entertain this appeal. Accordingly, the appeal fails and the same is dismissed.  
Ca .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X