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TMI Blog2011 (9) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... ions are only that the relief should be certified by the chartered accountant - Thus the appeal of Revenue is dismissed - ITA No. 366 of 2009 - - - Dated:- 28-9-2011 - N. Kumar and Ravi Malimath, JJ. Appearances: M.V. Seshachala for the Appellant. Smt. Sneha Nagaraj for the Respondent. JUDGMENT N. Kumar, J. The revenue has preferred this appeal challenging the order passed by the Tribunal which following the judgment of the Special Bench of the Tribunal, Mumbai Bench in Dy. CIT v. Syncome Formulations (I.) Ltd. [2007] 106 ITD 193 has already directed the Assessing Officer to allow the deduction under section 80HHC while computing the book profit under section 115JB in the manner laid down by the special bench. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion claimed should be debited to the P L a/c of the previous year in respect of which deduction is to be allowed and credited to the reserve account to be utilized for the business purpose. Sec. 80HHC(1) concerns eligibility whereas Section 80HHC(3) concerns computation of the quantum of deduction/tax relief. At one point of time prior to the Finance Act, 2000, exporters were allowed 100 per cent deduction in respect of profits derived from export of goods. However, that has now been reduced in a phase-wise manner under section. 80HHC(1B). It may be noted that all assessable entities are not eligible for deduction under Section. 80HHC. Similarly, only eligible goods are entitled to such special deduction under section. 80HHC(1). A bare read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1B) it is the extent of deduction which matters. The word "thereof" in each of the items under s. 80HHC(1B) is important. Thus, if an assessee earns Rs. 100 crores then for the asst. yr. 2001-02, the extent of deduction is 80 per cent thereof and so on which means that the principle of proportionality is brought in to scale down the tax incentive in a phased manner. However, for the purposes of computation of book profits which computation is different from normal computation under the 1961 Act/computation under Chapter VI-A. We need to keep in mind the upward and dounward adjustments and if so read it becomes clear that cl. (iv) covers full export profits of 100 per cent as "eligible profits" and that the same cannot be reduced to 80 per c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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