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TMI Blog2013 (4) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... ting Book Profit u/s. 115JB of the Act, the Assessing Officer has reduced the amount of deduction u/s. 10A as recomputed by him under the normal provisions of the Act whereas the assessee's contention is that Book Profit u/s. 115JB of the Act has to be computed , inter alia , by reducing the amount of income credited to profit and loss account to which Sec. 10A apply and by increasing the amounts of expenditure debited to Profit and loss account relatable to any income to which Sec. 10A apply in terms of Caluse (ii) and clause (f) to Explanation to Sec. 115JB of the Act. 4. At the very outset, the Ld. Counsel for the assessee submitted that the issue now stands covered in favour of the assessee. To substantiate his claim, the Ld. Counsel d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the assessee or determined by Assessing Officer while assessing income under regular provisions of Act. Hon'ble Supreme Court in the case of Ajanta Pharma Ltd (supra) has fortified the view taken by the Co-ordinate Benches. Considering the facts of the case, in the light of the above judicial pronouncement, we have no hesitation to hold that for the purpose of computing Book Profit u/s. 115JB of the Act, income has to be computed as per Parts of Schedule VI of Companies Act and not on basis of provisions of I.T. Act. Ground No. 1 & 2 are accordingly allowed. 7. The second issue relates to the interest on deposits which the lower authorities have taxed under the head "Income from other Sources" rejecting assessee's contention tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to computation of profits of the business of the undertaking and amount of deduction u/s. 10A. 12. The grievance relates to the setting off of the unabsorbed depreciation. It is the contention of the assessee that in computing income under the head "Profits & gains of business or profession" deduction u/s. 10A should be allowed before setting off of brought forward business loss and unabsorbed depreciation and the same should be set off of against the balance taxable income if any. 13. The Ld. Counsel for the assessee submitted that these issues are now well settled in favour of the assessee by the decision of the Hon'ble Bombay High Court in the case of CIT VS Black And Veatch Consulting Pvt. Ltd. (2012) 348 ITR 72 (Bom). 14. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the application of the provisions of section 72 which deals with the carry forward and set off of business losses. A distinction has been made by the Legislature while incorporating the provisions of Chapter VI-A. Section 80A(1) stipulates that in computing the total income of an assessee, there shall be allowed from his gross total income, in accordance with and subject to the provisions of the Chapter, the deductions specified in sections 80C to 80U. Section 80B(5) defines for the purposes of Chapter VI-A "gross total income" to mean the total income computed in accordance with the provisions of the Act, before making any deduction under the Chapter. What the Revenue in essence seeks to attain is to telescope the provisions of Chapter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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