Income Tax Appellate Tribunal - Bangalore
Amco Power Systems Pvt. Ltd., Bangalore vs Department Of Income Tax on 6 January, 2009
IN THE INCOME TAX APPELLATE TRIBUNAL
BANGALORE BENCH 'B'
BEFORE SHRI N.L.KALRA, ACCOUNTANT MEMBER
and
SHRI GEORGE GEORGE, K, JUDICIAL MEMBER
ITA No.228(Bang)/2009
(Assessment year: 2002-03)
Income-tax Officer,
Ward 11(1), Bangalore. .... Appellant
Vs.
M/s. Amco Power Systems Ltd.,
(Now M/s. Amco Saft India Ltd.)
Hebbal Bellary Jakkur Road,
Byatarayanapura, Bangalore. .... Respondent
Appellant by : Smt. V.S.Sreelekha.
Respondent by : Shri V.Srinivasan.
O R D E R
Per GEORGE GEORGE K, JM :
This appeal by the revenue is directed against the order of the ld. CIT(A)-I, Bangalore, dated 6-1-2009. The assessment year concerned is 2002-03.
2. The revenue has raised the following material ground:
"The learned CIT(Appeals) was not justified in holding that the deduction under section80HHC while computing the book profit u/s 115JB has to be worked out on the basis of the adjusted book profit as provided under clause (a) or clause (b) or clause (c) of sub-section (3) or sub-Section 3(A) of section 80HHC and not on the basis of the profit computed as per the regular provisions applicable to the computation of profits and gains of business or profession."
ITA 228/B/2009 Page 2 of 3
3. Brief facts of the case are as follows: The assessee- company is engaged in the business of manufacture and sale of storage batteries. The assessee filed its original return of income declaring a loss of Rs.20,65,456/-. Subsequently, the assessee filed a revised return revising the adjusted book profit u/s 115JB to Rs.1,35,64,211/- after reducing deduction claimed u/s 80HHC to the tune of Rs.11,39,119/-. The AO determined the book profit u/s 115JB at Rs.1,47,32,415/- as against the sum of Rs.1,35,64,211/- offered by the assessee. The difference between the two figures relates to the disallowance of deduction claimed of Rs.11,39,119/- u/s 80HHC of the IT Act while computing book profit. The AO made the variation because the assessee was not entitled to any deduction u/s 80HHC after setting off brought forward losses and unabsorbed depreciation resulting in there being no profits to claim the deduction. Consequently tax payable as per MAT was adopted since tax payable on income computed under normal provisions was less than tax payable as per MAT. On appeal, ld. CIT(A) granted relief to the assessee following the order of the ITAT, Special Bench (Mumbai) in the case of DCIT vs. Syncome Formulations (I) Ltd., (292 ITR (AT) 144). Being aggrieved, revenue is in appeal before us.
4. We have considered the matter and perused material on record. In the case of Syncome Formulations (I) Ltd., Special Bench (Mumbai) held that deduction u/s 80HHC in a case of minimum alternate tax assessment is to be ITA 228/B/2009 Page 3 of 3 worked out on the basis of the adjusted book profit and not on the basis of the profit computed under the regular provisions of law applicable to the computation of profits and gains of business or profession. Respectfully following the order of the Special Bench in the case cited supra, we uphold the order of the ld. CIT(A).
5. In the result, the appeal filed by the revenue is dismissed.
Order pronounced in the open court on 21st August, 2009.
Sd/- Sd/-
(N.L.Kalra) (George George K)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Bangalore:
D a t e d : 21st August,2009.
Eks*
Copy to :
1 Appellant
2 Respondent
3 CIT
4 CIT(A)-I, Bangalore.
5 DR, ITAT, Bangalore.
6 Guard file (1+1)
By Order
Assistant Registrar, ITAT, Bangalore.