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2019 (11) TMI 595 - ITAT BANGALOREDeduction u/s. 80IA - HELD THAT:- Deduction u/s.80IA of the Act has to be allowed as per Sec.80IA(1) of the Act, but the deduction so arrived at cannot exceed the gross total income of the Assessee. In the present case, the deduction u/s. 80IA of the Act, considering the business on which deduction u/s.80IA was claimed by the Assessee as the only income of the Assessee, was ₹ 24,36,83,037/-. The gross total income of the Assessee was ₹ 29,75,89,300/- (as per the return of income of the Assessee). Income under the head “Income from Business or profession” was ₹ 20,01,80,662/-. The ceiling of deduction u/s.80IA read with Sec.80AB or 80B(5) or 80A(2) is that it cannot exceed the gross total income, not the income determined under the head “income from Business or profession”. This aspect has not been noticed by the AO or the CIT(A). Conclusions of the CIT(A) that the Assessee should be allowed deduction u/s.80IA at ₹ 24,39,83,037/- as allowing the said deduction would not violate the mandate of law as laid down in the decision of the Hon’ble Supreme Court in the case of Synco Industries Ltd. [2008 (3) TMI 13 - SUPREME COURT] . For the reasons given above, we sustain the order of CIT(A). TDS u/s 194C - harvesting charges paid to labourers by the assessee on behalf of the cane growers - whether it is part and parcel of the cost price of sugarcane and the payment of which cannot be covered within the expression "work contract" - when as per assessee, the Alland unit cane price was fixed under two different heads? - HELD THAT:- If the contract to supply sugarcane is ex field (cost of harvesting and transportation to be borne by the Sugar manufacturer), then it is the responsibility of the assessee to lift the sugarcane from the field to its factory i.e., the assessee has to bear the harvesting and transportation charges for the sugarcane. There is no such material brought on record to come to the conclusion that the harvesting & transportation charges paid by the assessee is on ex-field basis. In such circumstances, we are of the view that, on the basis of probability, the plea of assessee has to be accepted and it has to be held that the payments made by the assessee towards harvesting and transportation charges have to be regarded as payment made for purchase of sugarcane and consequently the provisions of section 194C of the Act do not get attracted. - Decided in favor of assessee.
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