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TMI Blog2018 (11) TMI 1556X X X X Extracts X X X X X X X X Extracts X X X X ..... s - Held that:- Issue covered in favour of the assessee by the decision of the Hon'ble Supreme Court in C.I.T. v. Bhari Information Tech. Sys.P.Ltd. [2011 (10) TMI 19 - SUPREME COURT OF INDIA ]. MAT computation - revaluation reserve account for adjusting the depreciation should be allowed as deduction while computing the book profits - Held that:- The assessee in the previous assessment year on a revaluation of its assets, credited an amount to the revaluation reserve account. In the current assessment year, the assessee debited ₹ 2,72,43,385/- from the revaluation reserve account and adjusted the depreciation arising in the said year. In fact, this should have been shown in the profit and loss accounts as a profit, which the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was correct in: i) holding that the assessee's business in the purchase and sale of units and its business in the manufacture and sale of tyres constituted one and the same business? ii) holding that the buying and selling of units is not speculation business and that the profit of ₹ 12,17,441/- was a business profit and that it cannot be treated as a speculation profit? 2. Holding that the amount of deduction under section 80HHC should be worked out on the basis of book profits even though as per sub-section 3 of section 80 HHC, this has to be allowed on the basis of normal profits? 3. Holding that the amount of ₹ 2,72,43,385/-0 withdrawn from the revaluation reserve account for adjusting the deprec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.I.T. v. Bhari Information Tech. Sys.P.Ltd. [ ( 2012) 340 ITR 593 (SC) ]. What survives is only consideration of question No.3. 3. The assessee in the previous assessment year on a revaluation of its assets, credited an amount to the revaluation reserve account. In the current assessment year, the assessee debited ₹ 2,72,43,385/- from the revaluation reserve account and adjusted the depreciation arising in the said year. In fact, this should have been shown in the profit and loss accounts as a profit, which the assessee did not; but, however, adjusted to depreciation, which has the same effect. In fact, if the assessee had added on the said amounts to the profit, then under Section 115J [Minimum Alternate Tax (MAT)] the said amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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