CIT v. Bhari Information Technology Systems (P.) Ltd.

340 ITR 593Supreme Court of India2012#3687 most cited

What is CIT v. Bhari Information Technology Systems (P.) Ltd. authority for?

Section 115JB of the Income Tax Act, 1961, is a self-contained code, meaning only adjustments specified within the section are to be considered for book profits. Deductions, such as under Section 80HHC, should be allowed based on book profits, not adjustments under Section 115JB.

32

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2016 to 2025.

Also referred to as

CIT v. Bhari Information Technology Systems · Section 115JB · Section 80HHC · book profits · self-contained code · adjustments · deduction

Sections most often in play

Section 115JBSection 37(1)Section 80HHCSection 143(3)Section 234DSection 271(1)(c)Section 43BSection 92C(4)

Issues it is cited on

section 80hhc(3)section 115jasection 28(iv)section 80hhcsection 80hhsection 234dcorporate guaranteeright to receivesection 80ibsection 80hbook profitssection 92ca(3)

Judgments citing CIT v. Bhari Information Technology Systems (P.) Ltd.

The Commissioner of Income Tax vs. M/S.G.T.N.Industries Ltd

The appeal stands dismissed accordingly

ITA/1699/2009HC Kerala15 Jul 2021

Bench: HONOURABLE MR.JUSTICE S.V.BHATTI,HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS

For Respondent: “1. Whether, on the facts and in the circumstances of the case
Section 115JSection 14ASection 260ASection 80H

…pecified in sub- sections (4) and (4A) of that section) to obliterate the difference between "eligibility" and "deductibility" of profits as contended on behalf of the Department. 2 Civil Appeal No.6901/2012, arising out of SLP(C) No.22881/2011 3 [2012] 340 ITR 593 (SC) I.T.A. No.1699/2009 -6- For the above reasons, we set aside the impugned judgment of the High 11 Court and restore the judgment of the Tribunal. Accordingly, the civil appeal of the assessee is allowed with no order as to costs.” Civil Appeal No.6901 of 2012 [Arising out of S.L.P. (C) No.22881/2011 “The civil appeal filed by the assessee…

Larsen & Toubro Ltd, Mumbai vs. Addl CIT RG 2(2), Mumbai

In the result the appeal of the assessee is partly allowed and that of the revenue is dismissed

ITA 3076/MUM/2012[2000-01]Status: DisposedITAT Mumbai29 Oct 2020AY 2000-01
For Appellant: Shri J.D. Mistry, ARFor Respondent: Shri Rajiv Harit CIT, DR
Section 115Section 115JSection 14ASection 37Section 40A(9)Section 42Section 80Section 80HSection 80I

…e additional ground filed by the Appellant. Without prejudice, and in any case, the Appellant submits that the additional ground has been raised on account of the decision of the Apex Court in the case of CIT vs. Bahari Information Technology Systems Pvt. Ltd.340 ITR 593 which decision was not available at the time of filing the return of income. Therefore, the Appellant submits that the additional ground must be admitted and adjudicated by the Tribunal. 60. After hearing both the parties and carefully examining the records before us, we find that the issue is arising out of the records before the authorities be…

Alstom India Ltd, Mumbai vs. Addl CIT RG 1(1), Mumbai

In the result, assessee’s appeal is partly allowed

ITA 6960/MUM/2014[2008-09]Status: HeardITAT Mumbai28 Jun 2019AY 2008-09

Bench: Shri Saktijit Deyand Shri G. Manjnatha

For Appellant: Shri Mrunal Parekh a/wFor Respondent: Shri Anadi Verma
Section 143(3)Section 147Section 35D

…ed Authorised Representative strongly relying upon the observations of learned Commissioner (Appeals) submitted, the issue has now being set at rest by the decision of the Hon'ble Supreme Court in CIT v/s Bhari Information Technology Systems Pvt. Ltd., [2012] 340 ITR 593 (SC). Further, he relied upon the following decisions:– i) ASB International Pvt. Ltd. v/s DCIT, [2012] 26 taxmann.com 87 (Bom.); ii) Reliance Industries Ltd. v/s ACIT, [2012] 28 taxmann.com 189 (Mum.); and iii) KEC International Ltd. v/s DCIT, [2013] 33 taxmann.com 243 (Mum.). 19. We have considered rival submissions and perused the material o…

ACIT, Moradabad vs. M/S. Jubilant Organosyes Ltd., Uttar Pradesh

The appeal is dismissed

ITA 4975/DEL/2012[2008-09]Status: DisposedITAT Delhi12 Mar 2019AY 2008-09

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…2 ITR 22 (Madras) held that only book profits need to be taken into account for computing deduction under 80HHC of Act for purpose of section 115JA of Act. Further, Hon‟ble Supreme Court in case of CIT vs. Bhari Information Technology Systems (P.) Ltd. [2012] 340 ITR 593 (SC) upheld ruling of Special Bench Mumbai ITAT in case of DCIT & Ors. Vs. Syncome Formulations India Ltd.[2007] 13 SOT 414 (Mumbai) (SB) wherein in para 61 it was held that computation for deduction under section 80HHC needs to be worked out on basis of adjusted book profits for purpose of section 115JB of Act. The Hon‟ble Supreme Court in case…

ACIT, Moradabad vs. M/S Jubliant Organosys Ltd., Uttar Pradesh

The appeal is dismissed

ITA 2596/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…2 ITR 22 (Madras) held that only book profits need to be taken into account for computing deduction under 80HHC of Act for purpose of section 115JA of Act. Further, Hon‟ble Supreme Court in case of CIT vs. Bhari Information Technology Systems (P.) Ltd. [2012] 340 ITR 593 (SC) upheld ruling of Special Bench Mumbai ITAT in case of DCIT & Ors. Vs. Syncome Formulations India Ltd.[2007] 13 SOT 414 (Mumbai) (SB) wherein in para 61 it was held that computation for deduction under section 80HHC needs to be worked out on basis of adjusted book profits for purpose of section 115JB of Act. The Hon‟ble Supreme Court in case…

Jubilant Organosys Ltd., Noida vs. Addl. CIT, Moradabad

The appeal is dismissed

ITA 2497/DEL/2011[2007-08]Status: DisposedITAT Delhi12 Mar 2019AY 2007-08

Bench: Smt Beena A. Pillai & Shri Prashant Maharishi

For Appellant: Shri R.M. Gupta, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 115JSection 43(1)

…2 ITR 22 (Madras) held that only book profits need to be taken into account for computing deduction under 80HHC of Act for purpose of section 115JA of Act. Further, Hon‟ble Supreme Court in case of CIT vs. Bhari Information Technology Systems (P.) Ltd. [2012] 340 ITR 593 (SC) upheld ruling of Special Bench Mumbai ITAT in case of DCIT & Ors. Vs. Syncome Formulations India Ltd.[2007] 13 SOT 414 (Mumbai) (SB) wherein in para 61 it was held that computation for deduction under section 80HHC needs to be worked out on basis of adjusted book profits for purpose of section 115JB of Act. The Hon‟ble Supreme Court in case…

M/S. Tata Motors Ltd., Mumbai vs. Jt. CIT Spl. RG. - 2, Mumbai

Appeal of the AO is dismissed

ITA 7148/MUM/2004[1998-1999]Status: DisposedITAT Mumbai06 Jan 2017AY 1998-1999
For Appellant: Shri Dinesh VyasFor Respondent: Shri-Anand Mohan-CIT-DR
Section 254(1)Section 37

…ion 115JA,that the AO had neither discussed nor allowed the deduction.The FAA directed the AO to consider the claim made by the assessee and pass a speaking order. 21.1.Before us the AR relied upon the cases of Bhari Information Technology System Private Ltd.(340 ITR 593) and Gharda Chemicals Ltd.(55taxmann. com27).The DR left the issue to the discretion of the Bench.We find that the FAA had asked the AO to pass a speaking order after considering the submission of the assesse. If he has not passed the order till date,he is directed to follow the instruction of the FAA to consider the cases relied upon by the AR,…

Tata Motors Ltd vs. DCIT RG - 2(1)

Appeal of the AO is dismissed

ITA 6214/MUM/2003[1997 - 98]Status: DisposedITAT Mumbai06 Jan 2017
For Appellant: Shri Dinesh VyasFor Respondent: Shri-Anand Mohan-CIT-DR
Section 254(1)Section 37

…ion 115JA,that the AO had neither discussed nor allowed the deduction.The FAA directed the AO to consider the claim made by the assessee and pass a speaking order. 21.1.Before us the AR relied upon the cases of Bhari Information Technology System Private Ltd.(340 ITR 593) and Gharda Chemicals Ltd.(55taxmann. com27).The DR left the issue to the discretion of the Bench.We find that the FAA had asked the AO to pass a speaking order after considering the submission of the assesse. If he has not passed the order till date,he is directed to follow the instruction of the FAA to consider the cases relied upon by the AR,…

Bostan Analytics P.Ltd, Mumbai vs. DCIT RG 6(1), Mumbai

In the result, appeal of the assessee is allowed for statistical purposes

ITA 3139/MUM/2015[2007-08]Status: DisposedITAT Mumbai24 Oct 2016AY 2007-08

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita No.3139/Mum/2015 (निर्धारण वषा / Assessment Year :2007-2008) Boston Analytics Pvt. Ltd., Vs. Dcit – 6(1)(2), Mumbai C/O. Kalyaniwalla & Mistry Army & Navy Building, 3Rd Floor, 148, Mahatma Gandhi Road, Fort, Mumbai – 400001 Pan/Gir No. : Aaccb5871B Appellant) .. Respondent)

Section 10ASection 115JSection 143(3)Section 263Section 80H

…ns 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 regu…

Satlej Industries Ltd., Rajasthan vs. DCIT, New Delhi

In the result, both the appeals of the assessee are deemed to be allowed for statistical purposes with the directions as noted above

ITA 1777/DEL/2011[2004-05]Status: DisposedITAT Delhi24 Feb 2016AY 2004-05

Bench: Sri G.D. Agarwal, Hon’Blesri C.M.Garg

For Appellant: Sh. Rohit Jain, Adv., Sh. Sambhav Jain, C.AFor Respondent: Sh. Anima Barnwal, Sr. DR
Section 115JSection 1BSection 80H

…case of Ajanta Pharma (Supra), and Topman Exports (Supra) and Avani Export (Supra) u/s 115JB of the Act with reference to the adjusted book profits as held by the Supreme Court in the case of CIT vs. Bahari Information Technology System Pvt. Ltd. reported as 340 ITR 593 (SC) and the AO may also kindly be directed to allow reduction of 100% export profits as computed u/s 80HHC of the Act. 10. Replying to the above the ld. Departmental Representative (DR) strongly supported the action of the AO as well as the impugned order of the CIT(A). However, he fairly submitted that the department has no serious objection if…

Satlej Industries Ltd., Rajasthan vs. DCIT, New Delhi

In the result, both the appeals of the assessee are deemed to be allowed for statistical purposes with the directions as noted above

ITA 1776/DEL/2011[2003-04]Status: DisposedITAT Delhi24 Feb 2016AY 2003-04

Bench: Sri G.D. Agarwal, Hon’Blesri C.M.Garg

For Appellant: Sh. Rohit Jain, Adv., Sh. Sambhav Jain, C.AFor Respondent: Sh. Anima Barnwal, Sr. DR
Section 115JSection 1BSection 80H

…case of Ajanta Pharma (Supra), and Topman Exports (Supra) and Avani Export (Supra) u/s 115JB of the Act with reference to the adjusted book profits as held by the Supreme Court in the case of CIT vs. Bahari Information Technology System Pvt. Ltd. reported as 340 ITR 593 (SC) and the AO may also kindly be directed to allow reduction of 100% export profits as computed u/s 80HHC of the Act. 10. Replying to the above the ld. Departmental Representative (DR) strongly supported the action of the AO as well as the impugned order of the CIT(A). However, he fairly submitted that the department has no serious objection if…

Graphite India Ltd., Kolkata vs. Addi. Commissioner of Incime Tax, Range - 11, Kolkata

In the result, the appeal of the assessee is partly allowed as indicated above

ITA 397/KOL/2008[1998-99]Status: DisposedITAT Kolkata15 Jan 2016AY 1998-99

Bench: Shri P.M. Jagtap & Shri S.S. Viswanethra Ravi

…e sides have agreed that the issue raised by the assessee in the additional ground is squarely covered in favour of the assessee by the decision of the Hon’ble Supreme Court in the case of CIT –vs.- Bhari Information Technology Systems (P) Limited reported in 340 ITR 593, wherein it was held that while computing book profit under section 115JA, deduction claimed by the assessee under section 80HHC has to be worked out on the basis of adjusted book profit under section 115JA and not on the basis of the profits computed under regular provisions of law applicable to computation of profits and gains of business. The…