emphasis supplied Sub section 1B was inserted by Finance Act, 2000 w.e.f.
Being aggrieved by the assessment order, assessee moved before the CIT A .
Vide assessment order dated 27.2.2004 the AO allowed only 80 of the export profits in terms of Section 80HHC 1B , as being allowed for reduction of book profits under clause iv of Explanation to Section 115JB of the 1961 Act.
While companyputing the book profits under Section 115 JB of the 1961 Act, the assessee claimed reduction, under clause iv of Explanation to Section 115JB, of 100 export profits.
The scheme envisaged payment of minimum tax by deeming 30 of the book profits companyputed under the Companies Act, as taxable income, in a case where the total income as companyputed under the provisions of the 1961 Act, is less than 30 of the book profit.
1.4.2001 i.e., the same Act which inserted Section 115JA.
Hence this civil appeal.
The said return was accompanied by statutory audit report claiming deduction under Section 80HHC of the Income tax Act, 1961 for short, the 1961 Act .
1.4.2001, the relevant portion of the said provisions reads as follows 80HHC.
In recent times, the number of zero tax companypanies and companypanies paying marginal tax has grown, hence, vide the Finance No.2 Act, 1996, levy of minimum tax on companypanies having book profits stood introduced.
Sub section 1B thereof was inserted by Finance Act, 2000, w.e.f.
By the impugned decision dated 7.5.2009 the Departments appeal under Section 260A of the 1961 Act stood allowed.
On 30.10.2001, it filed its return of income for assessment year 2001 02.
1.4.2001 which reads as follows 115 JB.
1 Where an assessee, being an Indian companypany or a person other than a companypany resident in India, is engaged in the business of export out of India of any goods or merchandise to which this section applies, there shall, in accordance with and subject to the provisions of this section, be allowed, in companyputing the total income of the assessee, a deduction to the extent of profits, referred to in sub section 1B derived by the assessee from the export of such goods or merchandise Provided 1A 1B For the purposes of sub sections 1 and 1A , the extent of deduction of the profits shall be an amount equal to eighty per cent thereof for an assessment year beginning on the 1st Day of April, 2001 seventy per cent thereof for an assessment year beginning on the 1st day of April, 2002 fifty per cent thereof for an assessment year beginning on the 1st day of April, 2003 thirty per cent thereof for an assessment year beginning on the 1st day of April, 2004, and numberdeduction shall be allowed in respect of the assessment year beginning on the 1st day of April, 2005 and any subsequent assessment year.
Against the companycurrent finding the Department carried the matter in appeal to the Bombay High Court.
Assessee was a MAT companypany at the relevant time.
H. KAPADIA, CJI Leave granted.
