COMMISSIONER OF INCOME TAX Vs. MEENAKSHI INDIA LTD

JUDGEMENT

(1.) BY formulating the following Substantial Question of Law, the Revenue is on appeal against the order of the Income Tax Appellate Tribunal, Madras "B" Bench, dated 27.7.2007 made in ITA.No.1113/Mds/2005. The relevant assessment year is 2001-2002.

(2.) THE facts as culled out from the statement of facts in the memorandum of grounds are as follows: THE assessee company is trading in Textile goods readymade garments and cigarettes and power generation by wind mill and coffee plantation. THE assessee claimed benefit under Section 80HHC of the Income Tax Act, 1961 (in short " the Act") in respect of profits eligible for deduction under Section 80HHC of the Act. Since the assessee's claim under Section 80HHC is Nil, no deduction under Section 80HHC survives. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). THE Commissioner of Income Tax (Appeals) sustaining the order of the assessing officer dismissed the assessee's appeal. However, the Income Tax Appellate Tribunal on appeal being taken to it held that the computation of deduction under Section 80HHC of MAT assessment is to be worked out on the basis of the adjusted book profits and not on the basis of the profits computed under the regular provisions. THE correctness of the said order is now canvassed before this Court by filing this appeal.