COMMISSIONER OF INCOME TAX Vs. HINDUSTAN AERONAUTICS LTD.

JUDGEMENT

(1.) The revenue has preferred this appeal challenging the order passed by the Tribunal which following the judgment of the Special Bench of the Tribunal, Mumbai Bench in Dy. CIT v. Syncome Formulations (I.) Ltd., has already directed the Assessing Officer to allow the deduction under section 80HHC while computing the book profit under section 115JB in the manner laid down by the special bench.

(2.) Therefore, the question that arise for consideration is whether for determining book profits in terms of section 115JB net profits as shown in the profit and loss a/c have to be reduced by the amount of profits eligible for deduction under section 80HHC or by the amount of deduction under section 80HHC. This question is now decided by the Apex Court in the case of Ajanta Pharma Ltd. v. CIT, 2010 327 ITR 305, the Apex Court has held as under: