Commissioner of Income Tax vs Ambika Cotton Mills Ltd.

K. Raviraja Pandian, J.—These tax case appeals are filed at the instance of the Revenue formulating the following question of law:

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the disallowance of deduction u/s 80HHC in a case of MAT assessment is to be worked out on the basis of the adjusted book profits u/s 115JB of the income tax Act, 1961, is valid ?

Mr. T. Ravikumar, the learned counsel appearing for the Revenue, submitted that the issue has been decided by this court in the case of Commissioner of Income Tax Vs. Rajanikant Schnelder and Associates P. Ltd., Subsequently, the Bombay High Court 1 has taken a different view that the said case was not available when the matter was decided by this court in Commissioner of Income Tax Vs. Rajanikant Schnelder and Associates P. Ltd., . Hence, all these cases require reconsideration of this court. Commissioner of Income Tax Vs. Rajanikant Schnelder and Associates P. Ltd., has been rendered by this court on September 10, 2007, whereas the Bombay High Court judgment has been rendered on May 7, 2009. Whatever may be the reasoning given by the Bombay High Court, this court has followed the decision of the Supreme Court in M/s. Surana Steels Pvt. Ltd. Vs. The Deputy Commissioner of Income Tax and Ors, and also the judgment of the Supreme Court in Apollo Tyres Ltd. Vs. Commissioner of Income Tax, Kochi, The decision of our High Court in 2007 is squarely binding on us. Hence, following the decision of Commissioner of Income Tax Vs. Rajanikant Schnelder and Associates P. Ltd., , these tax case appeals, at the instance of the Revenue, are dismissed.