Dismissing the appeal of the revenue the Court held that Where assessee’s income was computed under section 115JA, Tribunal was justified in allowing deduction under section 80HHC on basis of book profits and not on basis of eligible profits under section 80HHC as per normal computation. Followed Ajanta Pharma Ltd v CIT (2010) 327 ITR 305 (SC) (AY. 200-01)
CIT v. Ashok Leyland Ltd. (2019) 266 Taxman 406/(2020) 190 DTR 158 (Mad.) (HC)
S. 115JA : Book profit–Deduction u/s. 80HHC is to be allowed on the basis of book profits and not on the basis of eligible profits under S. 80HHC. [S. 80HHC]