For s. 115JA/JB s. 80HHC deduction to be computed as per P&L Profits & not normal provisions

Al-Kabeer Exports Ltd vs. CIT (Supreme Court)

 

In computing “book profits” u/s 155JA & 115JB, the assessee claimed that the deduction admissible thereunder u/s 80HHC had to be computed on the basis of the “book profits” and not on the basis of the income computed under the normal provisions of the Act. This claim was upheld by the Tribunal by relying on the judgement of the Special Bench in DCIT vs. Syncome Formulations 106 ITD 193. On appeal by the Revenue, the High Court (233 CTR 443 (Bom)) reversed the Tribunal. On appeal by the assessee, HELD reversing the High Court: