BOSTAN ANALYTICS P.LTD,MUMBAI vs. DCIT RG 6(1), MUMBAI

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ITA 3139/MUM/2015Status: DisposedITAT Mumbai24 October 2016AY 2007-083 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the deduction under Section 10A for book profit computation must be worked out as per MAT working, not normal provisions. This decision followed the Supreme Court's ruling in similar cases.

What were the facts?

The assessee claimed deduction under Section 10A while computing book profit under Section 115JB. The Assessing Officer (AO), pursuant to a revision order by the CIT(A), computed the deduction based on normal provisions instead of MAT working.

What were the issues?

Whether Section 10A deduction should be computed based on normal provisions or MAT working for book profit under Section 115JB.

Which sections of the Income-tax Act were involved?

Section 10A,Section 115JB,Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, “B”, BENCH MUMBAI

Before: SHRI R.C.SHARMA, AM & SHRI SANDEEP GOSAIN, JM

For Appellant: Shri M M Golvala with Ms. Hetal
For Respondent: Shri Randhir Gupta
Hearing: 27/07/2016Pronounced: 24/10/2016

आदेश / O R D E R PER R.C.SHARMA (A.M):

1.

This is an appeal filed by the assessee against the order of CIT(A) for the assessment year 2007-2008, in the matter of order passed u/s 143(3) r.w.s. 263 of the I.T.Act.

2.

The only grievance of the assessee relates to deduction u/s 10A while computing book profit u/s 115JB, whether as per normal provisions or as per MAT working.

3.

Rival contentions have been heard and record perused.

4.

Facts in brief are that the assessee is engaged in the business of back office operations by way of business and market research and financial 2 Boston Analytics Pvt. Ltd., analytics. The assessee has only one undertaking – profit from which is eligible u/s.10A. In the Return of Income the assessee declared total income under normal provisions at Rs.NIL, after claiming deduction u/s.10A to the tune of Rs.64,60,154/-, and also NIL income u/s. 115JB (MAT) after claiming deduction in respect of section 10A to the tune of Rs.78,93,531/- in the MAT working. The assessment was completed u/s.143(3) vide order dated 24th December 2009 accepting the return, as filed.

5.

Thereafter, in pursuance of direction of CIT(A) u/s. 263 vide order dated 09/03/2012, the AO passed order u/s. 143(3) r.w.s. 263 wherein, while computing book profit deduction u/s. 10A was taken as per normal provisions instead of as per MAT working. The issue under consideration is squarely covered by the decision of Hon’ble Supreme Court in the following cases:- i. Ajanta Pharma Limited vs. CIT reported (327 ITR 311) ii. CIT vs, Bhari Information Tech Systems (P) Ltd., (340 ITR 593) 6. In the case of Bhari Information Tech Systems (supra) the Hon’ble Supreme Court has held as under:- “Held that the deduction under section 80HHE of the Income-Tax Act, 1961, in the case of export of computer software has got to be worked out on the basis of adjusted book profits under section 115JA and not on the basis computed under the regular provisions of law applicable to the computation of profits and gains of business.”

7.

Respectfully following the order of the Hon’ble Supreme Court, which has been subsequently followed in various High Courts and Benches of the Tribunal, we direct the AO to allow deduction u/s. 10A, while

3 Boston Analytics Pvt. Ltd., computing book profit as per the MAT working and not as per the normal provisions of the Act. We direct accordingly. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on this 24/10/2016

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