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TMI Blog2009 (4) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... PANDIAN and JUSTICE M. M. SUNDRESH Mr. T. Ravikumar for the appellant. JUDGMENT The Judgment of the Court was delivered by K.RAVIRAJA PANDIAN, J. - At the instance of the revenue, an appeal is filed against the order of the Income Tax Appellate Tribunal, Madras 'D' Bench, Chennai, dated 10.12.2007 passed in ITA No.2855/Mds/2005 in respect of the assessment year 2002-03. 2. The facts as culled out from the statement of facts in the memorandum of grounds of appeal are as follows :- The assessee, a company engaged in the manufacture of iron castings, filed its return of income for the assessment year 2002-03 admitting nil income. The return was processed under section 143(1) on 30.09.2002 and the case was selected for scrut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t business and also without restricting it as provided under Section 80HHC (1B) is proper?". 3. We heard the arguments of the learned counsel for the appellant and perused the materials available on record. 4. Similar question of law came up for consideration before the Division Bench of this Court in which one of us was a party (K.Raviraja Pandian) in the case of Commissioner of Income Tax vs. Rajanikant Schnelder and Associates P. Ltd., reported in 302 ITR 22). While considering the issue, the Division Bench has observed as follows:- "4. We are not able to subscribe our view to the grounds taken in the appeal that the deduction under Section 80 HHC is allowable only on the profits and gains arrived at under Sections 28 to 44 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of Parts II and III of Schedule VI to the Companies Act" in Section 115J was made for the limited purpose of empowering the Assessing Officer to rely upon the authentic statement of accounts of the company. While so looking into the accounts of the company, the Assessing Officer has to accept the authenticity of the accounts with reference to the provisions of the Companies Act, which obligate the company to maintain its accounts in a manner provided by that Act and the same to be scrutinized and certified by the statutory auditors and approved by the company in the general meeting and thereafter to be filed before the Registrar of Companies, who has a statutory obligation also to examine and be satisfied that the accounts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Division Bench which followed the Supreme Court Judgments would answer even the 2nd question of law extracted above. Apart from the above, we are in agreement with the reasoning stated by the Tribunal to the effect that the deduction under Section 80HHC in a MAT scheme is from the taxable income, which is otherwise the adjusted book profit. If no deduction is available to an assessee, the gross total income itself is the taxable income of the assessee. MAT scheme does not provide for deductions. Therefore, the interpretation is that the adjusted book profit of a company itself is the gross total income of that assessee-company. The deduction under section 80HHC in that way given out of the gross total income in a case falling under MAT. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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