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TMI Blog2014 (1) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; "The assessee company is a manufacturer of homeopathetic medicine. The only point for determination in this appeal is whether the Assessing Officer was correct in applying minimum alternate tax (MAT) provision under Section 115 JB of the Income Tax Act, 1961 while processing the return under Section 143(1) of the Income Tax Act, 1961. 1.1. Return of income showing total income of Rs.9,81,110/- was e-filed on 04.10.2010. The assessee claimed deduction of Rs.22,26,99,178/- under Section 80-IC of the Income Tax Act, 1961. Even though there was book profit of Rs.22,65,01,252/-, it did not compute MAT payable under Section 115 JB of the Income Tax Act, 1961. The return was processed under Section 143(1) of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by a company claiming deduction under Section 80-IC" is debatable. 3. That the Jurisdictional High Court, Uttarakhand in the case of Sidcul Industrial Associations vs. State of Uttarakhand (2011) 199 Taxman, 75 has held that s.115 JB of the Income Tax Act, 1961 will apply to an assessee being a company, even if it is entitled to deductions under Section 80-IC of the Income Tax Act, 1961. 4. That even though the Ld.CIT(A) has decided that the case falls under the jurisdiction of Assessing Officer of Haridwar Range, Ld.CIT(A) has erred in not providing any opportunity of being heard to ACIT, Circle-Haridwar on the matter and as such the order is against natural justice. &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence: Sec. 143. (1) : Where a return has been made under section 139, or in response to a notice under sub-section (1) of section 142, such return shall be processed in the following manner: (a) the total income or loss shall be computed after making the following adjustments, namely :- (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; ............................................... E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of accounts are certified by the authorities under the Companies Act and there after as the limited power of making increase or decrease of certain items specifically provided for in the Explanation to S.115J. 10. Applying the proposition laid down by the Hon'ble Supreme Court to S.115 JB, we find that a deduction u/s 80-IC, is not an item of adjustment in Explanation I to S.115 JB. While so, to claim reduction of the amount deductible u/s 80-IC, while computing book profits u/s 115 JB, is not in accordance with the apparent reading of the provisions of S.115 JB. Thus, in our considered opinion, such a claim is an incorrect claim and this is apparent from information in the return as defined in the Explanation (a) to S.143(1)(a)(ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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