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2019 (6) TMI 739 - ITAT BANGALOREDeduction u/s. 80IB - disallowance of a deduction claimed by the assessee being loss incurred on assignment of advances - Admission of additional ground - Whether it enhances the profits of the appellant and consequently on the enhanced income the appellant is entitled for deduction under section 80-IB of the Act as per the Circular issued by the Central Board of Direct Taxes in Circular No. 37/2016, dated 02/11/2016? - HELD THAT:- Prima facie the claim made by the assessee in the additional ground of appeal deserves to be accepted. However, it requires to be verified whether the impugned disallowance would go to enhance the profits on which the assessee had claimed deduction u/s. 80IB of the Act. We therefore set aside the order of CIT(Appeals) on this issue and restore the same to the file of AO to examine this aspect and if the claim made by the assessee is found to be correct, then assessee should be allowed deduction u/s. 80IB on the enhanced profit and consequently the disallowance made by the AO will have no effect. Therefore, the question whether the disallowance is justified or not is left open MAT computation - addition on account of provision for bad and doubtful advances while computing book profits u/s. 115JB - HELD THAT:- As relying on M/S KIRLOSKAR SYSTEMS LTD [2013 (12) TMI 9 - KARNATAKA HIGH COURT] provision for bad and doubtful advances debited in the P&L account and its simultaneous reduction in the loans & advances in the balance sheet will not only mean that there was an actual write off of bad and doubtful advances in the P&L account, but also that there was no deduction claimed on account of provision by the assessee. Consequently, the addition made by the AO in determining the book profits of the assessee is not warranted and the said addition directed to be deleted. Consequently, the second issue is decided in favour of assessee.
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