F.M.IBRAHIM KALIFULLA, J. –

1. The Revenue has come forward with these appeals and seeks to raise the following question of law as substantial question of law:

"Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that in the computation of book profits u/s.115JA / 115JB, the deduction u/s.80HHC had to be allowed on the basis of book profits and not by applying the normal provisions of the Act, for computation of the deduction?"

2. It was fairly brought to our notice that this very question came up for consideration before the Hon'ble Supreme Court in the decision reported in (2010) 327 ITR 305 (Ajanta Pharma Limited vs. Commissioner of Income-tax). The Hon'ble Supreme Court posed the question, namely, "whether for determining the "book profits" in terms of Section 115JB, the net profits as shown in the P&L account have to be reduced by the amount of profits eligible for deduction under Section 80HHC or by the amount of deduction under Section 80HHC?"

3. While examining the said question, the Hon'ble Supreme Court has observed as under in paragraph 9:

"..... Thus, Section 80HHC(IB) deals not with "eligibility", b