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TMI Blog2013 (11) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... are being disposed of by this consolidated order. The grounds of appeal being identical in both the appeals read as under:- "1. On the facts and in the circumstances of the case, the learned CIT (A) has erred in law and on facts in deleting the disallowance made by the Assessing Officer on account of deduction claimed by the assessee u/s 80HH of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case, the learned CIT (A) has erred in law and on facts in holding that while computing the book profits u/s 115JB, the amount of profit eligible for deduction u/s 80HHC should be based on book profit and not on the profit under the normal provisions of the Income Tax Act, 1961. 3. On the facts and in the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h decision of ITAT in the case of DCIT vs. Syncome Formulations 106 ITD 193 (SB), while computing the book profit u/s 115JB, as per clause (iv) of Explanation to Section 115JB (2) of the Act, the amount of profit eligible for deduction u/s 80HHC has to be reduced and the computation has to be made on the basis of book profit and not as per regular provisions of the Act. Learned CIT (A) has noted that this issue is covered by the earlier decision of ITAT in the case of the assessee and, accordingly, he held that deduction u/s 80HHC is allowable to the assessee while computing book profit for the purpose of determining income u/s 115JB. ii) Regarding sunset clause contained in Section 80HHC (1B), whether it applied or not, learned CIT (A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reduced and it should be reduced in accordance with the Sunset Clause. 3. On the other hand, it was submitted by the learned AR that all the issues raised by the revenue are covered in favour of the assessee. 4. In the rejoinder, it was submitted by the learned DR that computation of deduction u/s 80HHC in both the years should at least be reduced to the extent of miscellaneous income and interest income which cannot be considered to be part of export profits. Thus, it was pleaded by the learned DR that to that extent the order of the CIT (A) should be modified. 5. We have carefully considered the rival submissions in the light of the material placed before us. So far as it relates to the issue regarding allowability or otherwise of ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argument. If the dichotomy between "eligibility" of profit and "deductibility" of profit is not kept in mind then section 115JB will cease to be a self-contained code. In Section 115JB, as in section 115JA, it has been clearly stated that relief will be computed u/s 80HHC (3)/(3A), subject to the conditions under sub-sections (4) and (4A) of that Section. The conditions are only that the relief should be certified by the Chartered Accountant. Such condition is not a qualifying condition, but, 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- section (4) and (4A) of that section) to obliterate the difference between "elig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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