Deduction u/s. 80HHE 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 – SC

CIT Vs. Bhari Information Tech Systems (Supreme Court of India)- Deduction under Section 80HHC (Section 80HHE also falls in Chapter VI‐A) is to be worked out not on the basis of regular income tax profits but it has to be worked out on the basis of the adjusted book profits in a case where Section 115JA is applicable. In the said judgement the dichotomy between regular income tax profits and adjusted book profits under Section 115JA is clearly brought out.

The Tribunal in the said judgement rightly he

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