The Commissioner Of Income Tax,Coimbatore v. M/S.bannari Amman Sugars Ltd

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 30.07.2018 Tax Case (Appeal) No.163 of 2009 The Commissioner of Income Tax,Coimbatore v. ... Appellant M/s.Bannari Amman Sugars Ltd. 1212, Trichy Road Coimbatore 641 018 ... Respondent Tax Case Appeal filed under Section 260A of the Income TaxAct, 1961 against the order of the Income Tax Appellate TribunalMadras 'D' Bench, dated 15.02.2007 in ITA No.1824/Mds/2006 forthe assessment year 1999-2000 preferred agaisnt the order dated03.05.2006 in Appeal No.ITA.NO.430/2005-2006 on the file of theCommissioner of Income Tax(Appeals-I) Coimbatore preferredagainst the Assessment order dated 25.01.2000 on the file of theAssistant Commissioner of Income Tax, Company Circle I(2)Coimbatore-18. For Appellant Senior Standing Counsel Assisted by M/s.K.G.Usha Rani, Junior Standing Counsel For Respondent: Mr.R.Venkat Narayanan for M/s.Subbaraya Aiyar & Padmanabhan Heard Mr.T.R.Senthil Kumar, learned Senior Standing Counselassisted by Ms..K.G.Usha Rani learned Junior Standing Counselfor the Revenue and Mr.R.Venkat Narayanan, learned counselappearing for the respondent. https://hcservices.ecourts.gov.in/hcservices/ 2. This appeal by the Revenue is directed against the orderpassed by the Income Tax Appellate Tribunal in I.T.A.No.1824/Mds/2006 dated 15.02.2008. 3. The above tax case appeal has been admitted on thefollowing substantial question of law : "(i) Whether on the facts and in thecircumstances of the case, the the IncomeTax Appellate Tribunal is right in law inholding that the assessee is entitled todeduction under BOHHC on the book profitsunder section 115 JA /JB even though thenormal computation of business income wasNIL? (ii) Whether on the facts and in thecircumstances of the case, the Income TaxAppellate Tribunal is right in deciding theissue in favour of the assessee by grantingdeduction under section BOHHC while applyingthe Special provisions of section 115 JA /JBof the Income Tax Act for the assessment year1999-2000?" 4. The Tribunal decided the matter in favour of the assesseeand in doing so, relied upon the decision of the Special Benchof the Mumbai Tribunal in the case of DCIT v. SyncomeFormulations (I) Ltd. and others reported in 292 ITR 144 (AT)wherein, it was held that computation has to be done under thebook profits and not under the normal computation. 5. The legal issue was considered by the Hon'ble SupremeCourt in the case of Ajanta Pharma Ltd. v. Commissioner ofIncome Tax reported in 2010(327) ITR 0305 and it was held thatclause (iv) of Explanation to Section 115 JB covers full exportprofits of 100% as "eligible profits" and the same cannot bereduced to 80% by relying on section 80 HHC(1B) and theargument of the Department that both "eligibility" as well as"deductibility" of the profit have to be considered togetherfor working out the deduction as mentioned in clause (iv) ofExplanation to Section 115JB is devoid of merits. 6. Thus, the decision of the Hon'ble Supreme Court inAjanta Pharma Ltd. (cited supra) applies to the case on hand,as identical question has been framed for consideration.Further, we note that the decision of the said fact in SyncomeFormulations (I) Ltd. (cited supra) was considered by the https://hcservices.ecourts.gov.in/hcservices/ Hon'ble Supreme Court along with other decisions and thedecision of the Tribunal was confirmed in the case ofCommissioner of Income Tax v. Bhari informations TechnologySystem (P) Limited reported in 2012(340) ITR 0593. 7. In the light of the aforesaid decisions, the substantialquestions of law, which have been framed for consideration isanswered against the Revenue. Accordingly the Tax Case Appealstands dismissed. No costs. https://hcservices.ecourts.gov.in/hcservices/ Hon'ble Supreme Court along with other decisions and thedecision of the Tribunal was confirmed in the case ofCommissioner of Income Tax v. Bhari informations TechnologySystem (P) Limited reported in 2012(340) ITR 0593. 7. In the light of the aforesaid decisions, the substantialquestions of law, which have been framed for consideration isanswered against the Revenue. Accordingly the Tax Case Appealstands dismissed. No costs. Sd/- Assistant Registrar(CS VII) //True Copy// Sub Assistant RegistrarRj To1.The Assistant Registrar,The Income Tax Appellate Tribunal, Madras 'D' Bench.2.The Commissioner of Income Tax, Coimbatore 3.The Assistant Commissoner of Income Tax,Company Circle I(2),Coimbatore-18+1cc to Mr.T.R.Senthil Kumar, Advocate sr.no.51799+1cc to M/s.Subbaraya Aiyar, Advocate sr.no.51795 Tax Case (Appeal) No.163 of 2009 nr 03/09/2018