JUDGMENT N. Kumar , J.—The revenue has preferred this appeal challenging the order passed by the Tribunal which following the judgment of the Special Bench of the Tribunal, Mumbai Bench in Dy. CIT v. Syncome Formulations (I.) Ltd. [2007] 106 ITD 193 has already directed the Assessing Officer to allow the deduction under section 80HHC while computing the book profit under section 115JB in the manner laid down by the special bench. 2. Therefore, the question that arise for consideration is whether for determining book profits in terms of section 115JB net profits as shown in the profit and loss a/c have to be reduced by the amount of profits eligible for deduction under section 80HHC or by the amount of deduction under section 80HHC. This question is now decided by the Apex Court in the case of Ajanta Pharma Ltd. Vs. Commissioner of Income Tax-9, Mumbai, (2010) 327 ITR 305 SC , the Apex Court has held as under: a. By the Finance Act, 2000, s. 115JB was inserted w.e.f. 1st April, 2001 providing for levy of MAT on certain companies. Sec. 115JB, though structured differently, stood inserted to provide for payment of advance tax by MAT companies. Sec. 115JB is the successor section to s. 115JA. In essence, it is the same except that s. 115JA provided for MAT on companies, so far as it docs not deem the book profit as total income. under Section 115JB, however, cl. (viii) of s. 115JA is renumbered as cl. (iv) s. 115JB continues to remain a self-contained code. b. On the other hand, s. 80HHC(1) inter alia states that where an assessee, who is the Indian resident, is engaged in the business of exports out of India of any goods sans convertible foreign exchange then in computing the total income, a deduction of the profits derived from such exports would be admissible. Thus, s. 80HHC provides for tax incentives. Sec. 80HHC(1) at one point of time laid down that an amount equal to the amount of deduction claimed should be debited to the P&L a/c of the previous year in respect of which deduction is to be allowed and credited to the reserve account to be utilized for the business purpose. Sec. 80HHC(1) concerns eligibility whereas s. 80HHC(3) concerns computation of the quantum of deduction/tax relief. Sec. 80HHC(1) concerns eligibility whereas s. 80HHC(3) concerns computation of the quantum of deduction/tax relief. At one point of time prior to the Finance Act, 2000, exporters were allowed 100 per cent deduction in respect of profits derived from export of goods. However, that has now been reduced in a phase-wise manner under Section 80HHC(1B). It may be noted that all assessable entities are not eligible for deduction under Section 80HHC. Similarly, only eligible goods are entitled to such special deduction under Section 80HHC(1). A bare reading of s. 80AB shows that computation of deduction is geared to the amount of income, but s. 80HHC(3), which refers to quantification of deduction is geared to the exports turnover and not to the income. On the other hand, s. 115JB refers to levy of MAT on the deemed income. The above discussion is only to show that ss. 80HHC and 115JB operate in different spheres. Thus, two essential conditions for invoking s. 80HHC(1) are that assessee must be in the business of export and secondly that sale proceeds of such exports should be receivable in India in convertible foreign exchange. Hence, s. 80HHC(1) refers to "eligibility" whereas s. 80HHC(3) refers to computation of tax incentive. Coming to s. 80HHC(1B) it is clear that after Finance Act, 2000 w.e.f. asst. yr. 2001-02 exporters would not get 100 per cent deduction in respect of profits derived from exports but that they would get deduction of 80 per cent in the asst. yr. 2001-02, 70 per cent in the asst. yr. 2002-03 and so on. Thus, s. 80HHC(1B) deals not with "eligibility" but with the "extent of deduction". As earlier stated, s. 115JB is a self-contained code. It taxes deemed income. It begins with a non obstante clause. Sec. 115JB refers to computation of "book profits" which have to be computed by making upward and downward adjustments. In the downward adjustment, vide cl. (iv) it seeks to exclude "eligible" profits derived from exports. On the other hand, under Section 80HHC(1B) it is the extent of deduction which matters. The word "thereof" in each of the items under Section 80HHC(1B) is important. Thus, if an assessee earns Rs.100 crores then for the asst. yr. In the downward adjustment, vide cl. (iv) it seeks to exclude "eligible" profits derived from exports. On the other hand, under Section 80HHC(1B) it is the extent of deduction which matters. The word "thereof" in each of the items under Section 80HHC(1B) is important. Thus, if an assessee earns Rs.100 crores then for the asst. yr. 2001-02, the extent of deduction is 80 per cent thereof and so on which means that the principle of proportionality is brought in to scale down the tax incentive in a phased manner. However, for the purposes of computation of book profits which computation is different from normal computation under the 1961 Act/computation under Chapter VI-A. We need to keep in mind the upward and dounward adjustments and if so read it becomes clear that cl. (iv) covers full export profits of 100 per cent as "eligible profits" and that the same cannot be reduced to 80 per cent by relying on s. 80HHC(1B). Thus, for computing "book profits" the downward adjustment, in the above example, would be Rs.100 crores and not Rs.90 crores. The idea being to exclude "export profits" from computation of book profits under Section 115JB which imposes MAT on deemed income. The above reasoning also gets support from the Memorandum of Explanation to the Finance Bill, 2000. c. If the dichotomy between "eligibility" of profit and "deductibility" of profit is not kept in mind then s. 115JB will cease to be a self-contained code. In s. 115JB, as in s. 115JA, it has been clearly stated that the relied will be computed under Section 80HHC(3)/3(A), subject to the conditions under sub-cls. (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 cl. (iv) of Explanation to s. 115JB (subject to the conditions specified in sub-cls. (4) and (4A) of that section) to obliterate the difference between "eligibility" and "deductibility" of profits as contended on behalf of the Department. 3. In view of the law declared by the Apex Court as aforesaid, we do not find any error in the order passed by the Tribunal which calls for interference. Accordingly, appeal is dismissed.