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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 ..... ly 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 condition is only that relief should be certified by the Chartered Accountant - 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 “eligibility” and “deductibility” of profits - Decided against Revenue. - ITA Nos.4880 & 4881/Del/2011 - - - Dated:- 17-4-2012 - Shri G. D. Agrawal And Shri I. P. Bansal, JJ. For the Petitioner : Shri Suresh Anantharaman, CA For the Respondent : Shri S. Krishna, CIT, DR ORDER Per I. P. Bansal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. 5. The appellant craves leave to add, alter, or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal. 2. The income of the assessee under the normal provisions of the Act has been computed at nil in view of brought forward business loss/depreciation. It is because of that the assessee was not eligible for deduction u/s 80HHC in view of non-availability of any income. Therefore, the Assessing Officer has computed the income of the assessee under the provisions of Section 115JB and has declined to reduce the claimed deduction u/s 80HHC out of book profit and he has disallowed the said deduction u/s 80HHC at ₹ 3,27,78,126/- and the book profit of the assessee after giving set o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pharma Ltd. has not accepted such claim of the assessee. Learned CIT (A) has found that the said decision of Hon ble Bombay High Court has now been reversed by the Hon ble Supreme Court in the case of Ajanta Pharma Ltd. 327 ITR 305 (SC). Learned CIT (A) has quoted the observations of their lordships from the said decision and has come to the conclusion that since the decision of Hon ble Bombay High Court in the case of Ajanta Pharma Ltd. (supra) has been reversed by Hon ble Supreme Court, the issue has to be decided in favour of the assessee and he has directed the Assessing Officer to calculate and allow the deduction u/s 80HHC without applying the Sunset Clause as specified u/s 80HHC (1B) and, in this manner, learned CIT (A) has decided t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the audit report has only to be reduced. The Sunset Clause has also not to be applied and these issues are covered by the aforementioned decision of Hon ble Supreme Court. So far as it relates to the contention of the learned DR that miscellaneous income and interest income should also be reduced while computing book profit, we find that this argument of the learned DR is not acceptable as in accordance with the Section 115JB 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 condition is only that relief should be certified by the Chartered Accountant. Such condition is not a qualifying condition, but, is a compliance condition. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not a qualifying condition but it is a compliance condition. Therefore, the argument raised by the learned DR has to be rejected. The decision of learned CIT (A) is in accordance with the aforementioned judicial pronouncement. It may also be mentioned here that the decision of Special Bench in the case of Syncome Formulations (I) Ltd. (supra) has been approved by Hon ble Supreme Court in the case of CIT vs. M/s Bhari Information Tech Systems Pvt. Ltd. 340 ITR 593 (SC). 7. In view of the above discussion, we find no infirmity in the order passed by the CIT (A) on each of the grounds raised by the revenue and both the appeals filed by the revenue are dismissed. 8. In the result, the appeals are dismissed. The order pronounced i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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