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2013 (9) TMI 1114 - ITAT AHMEDABADDeduction of the assessee u/s. 80IB - Held that:- We are of the considered opinion that Ld. CIT(A) was justified in holding that for claiming deduction u/s. 80IB no separate books of account were required to be maintained for different undertakings. Since basis of allocation of expenses was accepted by the revenue over the past so many years therefore it cannot be rejected in this year. The other contention of the AO regarding huge losses incurred in non-eligible unit was also found not on sound basis by the Ld. CIT(A) as cattle feed plant was physically separate unit and allocation of common expenses out of dairy business with it did not arise. The AO had disallowed the expenses on estimated basis only without finding any specific defect in the allocation of expenses done by the assessee which was done by the assessee on the same line as was done in earlier years which were accepted by the revenue over the years so applying the rule of consistency Ld. CIT(A) has rightly directed the AO to delete the disallowance rejecting the claim of deduction of the assessee u/s. 80IB of the Act. Disallowance of deduction u/s. 80P(2)(d) - Held that:- The only requirement was that income should be received from investment in co-operative societies and co-operative banks. Since in the present case, it was undisputed fact that income claimed u/s. 80P(2)(d) was received from the investment made in co-operative societies and co-operative banks, therefore assessee was eligible for deduction u/s. 80P(2)(d) of the Act. We further find that even otherwise since assessee was having mixed funds and the interest free funds were more than investment in co-operative banks and co-operative societies no disallowance was called for from eligible deduction u/s 80P(2(d) of the Act.
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