Case Law Details
If the dichotomy between eligibility of profit and deductibility of profit is not kept in mind then section 115JB will cease to be a self-contained code. In Section 115JB, as in section 115JA, it has been clearly stated that relief will be computed u/s 80HHC (3)/(3A), subject to the conditions under sub-sections (4) and (4A) of that Section.
The conditions are only that the relief should be certified by the Chartered Accountant. Such condition is not a qualifying condition, but, it is a compliance condition. Therefore, one cannot rely upon the last sentence in clause (iv) of Explanation to section 115JB (subject to the conditions specified in sub- section (4) and (4A) of that section) to obliterate the difference between eligibility and deductibility of profits as contended on behalf of the Department.
From the above observations, it is clear that the quantum of deduction u/s 80HHC under the provisions of Section 115JB will be limited to the relief certified by the Chartered Accountant and this is not a qualifying condition but it is a compliance condition.
INCOME TAX APPELLATE TRIBUNAL, DELHI
ITA Nos. 4880 & 4881/Del/2011
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