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2014 (1) TMI 1260 - AT - Income TaxDeduction u/s 80HHE of the Act – profit of the concerned business is to be considered or profit of all the business to be considered - net result is loss - Held that:- The net result of the computation in respect of any source of business, if it is a loss, can be adjusted against the income from any other business as provided in section 70(1) - Therefore, when Explanation (d) provides that the expression “profits of the business” means the profits of the business as computed under the head “Profits and gains of business”, it means the profits of the eligible business as computed under the aforesaid head - It has possibly been enacted to clarify or explain that the profits of the eligible business is not what the books of account of the assessee show and it can only be what the assessment order shows - It is also significant that sub-section (3) as well as Explanation (d) refer only to “profits of the business” and not the profits of all the businesses carried on by the assessee - This reasoning also takes care of the argument of the learned CIT DR based on section 80IA(5) – relying upon Datamatics Limited. Versus Assistant Commissioner Of Income-tax, Circle 8 (1), Mumbai [2007 (2) TMI 237 - ITAT BOMBAY-H] - The Assessing Officer has not expressed any opinion on this point because according to his calculation the figure of business profits was negative and, therefore, even at the threshold the assessee’s claim could not be entertained – What would be the export turnover and the total turnover is not the subject matter of the present appeal - The ground as taken by the assessee is allowed - the deduction u/s 80HHE as claimed by the assessee allowed – Decided partly in favour of Assessee. Disallowance u/s 14A of the Act – Held that:- The disallowance has been made in a proper manner by the assessee and even if the method adopted by the AO is to be adopted, even then, there cannot be a major difference in the disallowance, in fact, the computation made in the SOF in accordance with the AO's method also - the disallowance is coming at exactly the same figure - the disallowance cannot be sustained – Decided in favour of Assessee.
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