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2013 (2) TMI 554 - ITAT MUMBAIDeduction u/s 80IA - Rectification u/s 154 - held that:- even though AO correctly stated that the deduction under section 80IB has to be restricted to the gross total income while allowing the set off, he wrongly restricted it to profits and gains of the business. As against the eligible amount under section 80IB, assessee gross total income (including the income from house property) was at Rs.9,14,13,162/-. Instead of allowing the deduction under section 80IB invoking the provisions of section 80A(2), AO restricted the amount to Rs.8,33,80,662/- ie. Income from business only. Therefore, the computation made by AO is factually not correct. Assessee is entitled for deduction under section 80IB on the gross total income which should include income from house property and income from business and other incomes under other heads before allowing the deduction under Chapter VIA. Hon'ble Bombay High Court in the case of Synco Industries Ltd vs. AO, [2001 (7) TMI 45 - BOMBAY HIGH COURT] has held that, The provisions of 80IA and 80IB are pari materia and the principles will apply equally. Expenditure towards sponsoring the Indian Science Congress - held that:- The expenditure is in the nature of advertisement of assessee business and is laid out and expended wholly and exclusively for the purpose of the business. - Expenditure allowed. Nature of exchange difference - held that:- Following the principles laid down by the Hon'ble Supreme Court in the case of Liberty India Vs Commissioner of Income-tax, [2009 (8) TMI 63 - SUPREME COURT] the income from premium relating to import license cannot be considered as income derived from the undertaking. - Decided in favor of revenue.
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