Income Tax – Deduction Under Section 80HHE
IN AN order delivered last week, the Supreme Court held, “In view of this Court's Order in the case of Commissioner of Income-Tax vs. Bhari Information Technology Systems (P) Ltd. (), upholding the judgment of the Special Bench of Income Tax Appellate Tribunal in the case of Deputy Commissioner of Income Tax vs. Syncome Formulations (I) Ltd., (2007-TIOL-96-ITAT-MUM-SB), the impugned judgment of the High Court is set aside and the judgments of the ITAT in these cases stand affirmed.
The lower authorities had held that, “deduction claimed by the assessee under Section 80HHE has to be worked out on the basis of adjusted book profit under Section 115JA and not on the basis of the profits computed under regular provisions of law applicable to computation of profits and gains of business”.