9911796707
TMI Blog2016 (4) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... 04-05. 2. The assessee has raised the following grounds of appeal: 1. "That the order of the Commissioner of Income tax in so far as it is against the appellant is against the law, facts, circumstances, natural justice, equity, without jurisdiction, bad in law and all other known principles of law. 2. That the order passed u/s 263 by the Learned CIT is erroneous having regard to the facts, circumstances and law on the issue. 3. That the order passed u/s 263 by the Learned CIT is barred by limitation requires to be cancelled. 4. The CIT erred in assuming jurisdiction u/s 263 without first satisfying that the assessment order suffered from an error which is prejudicial to the interest of revenue. 5. The CIT erred in issuing the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revise the order of the AO by issuing show-cause notice dated 15/2/2008 u/s 263 of the Act. Thereafter, the CIT passed revision order dated 12/2/2009 which was challenged by the assessee before this Tribunal in ITA No.518/Bang/2009 on the ground that the CIT has passed the impugned order dated 12/2/2009 without considering the reply filed by the assessee in response to the show cause notice. The Tribunal vide its order dated 30/10/2009, restored the matter to the record of the CIT to decide the issue after providing due opportunity of hearing to the assessee. Consequently, the CIT has passed the impugned order dated 30/3/2012 whereby it was held that the order of the AO passed u/s 143(3) dated 30/11/2006 is erroneous and prejudicial to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has held that sec.115JB refers to levy of MAT on deemed income and sections 80HHC and 115JB operate in different spheres. Hon'ble Supreme Court has observed that section 80HHC(1) refers to eligibility whereas sec.80HHC(3) refers to computation of tax incentive. Sec.115JB is a self-contained code as it taxes deemed income. Thus for computing book profits, downward adjustment would be the full amount of export profits. Therefore, clause (iv) of Explanation to sec.115JB covers full export profits of 100% as eligible profit and the same cannot be reduced to the slab percentage as in the normal computation of income of the assessee. He has pointed out that by following the judgment of the Hon'ble Supreme Court in the case of Ajanta Pharma Ltd.(s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he deduction u/s 80HHC would be Rs. 67,47,326/-. This finding of the CIT has not been disputed by the assessee that loss suffered under export of trading goods was to be set off against the amount as per proviso to sec.80HHC(3), then the deduction u/s 80HHC would be Rs. 67,47,326/- as against the claim of Rs. 4,48,59,326/-. We find that the issue involved in the revision proceedings is limited only to the extent of not setting off of loss suffered by the assessee in the export of trading goods in terms of proviso to sec.80HHC(3) and therefore, there was no issue regarding allowing deduction u/s 80HHC on the full amount of export profit while computing MAT liability u/s 115JB. The CIT has directed the AO that while computing MAT liability un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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