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2015 (7) TMI 327 - AT - Income TaxReopening of assessment - disallowances of deduction claimed u/s.80P(2) - CIT(A) directing re-computing the total income after deduction u/s.80P of ₹ 10,81,712/- as against ₹ 50,04,034/- determined by the A.O - Held that:- The appellant had wrongly reduced the items of' Municipal Taxes pertaining to house properties as against adding it back. This would increase the income from business activity further by ₹ 56,400/-. Therefore the income determined from its business and profession would be ₹ 77,598/- (Loss) as against loss of ₹ 2,88,873/- shown by the appellant [ - ₹ 2,88,873/- + Rs.l,54,875/- + ₹ 56,400/-]. The gross total income of the appellant would be higher by an amount of ₹ 211275/- than what has been shown by the appellant in its computation of income submitted in response to the show cause. The gross total income of the appellant is therefore taken at ₹ 1555407/- as against ₹ 1344132/- determined by him. Coming to the deductions claimed by the appellant in its revised computation before me, the deductions of ₹ 28,224/- u/s. 80P(2)(a)(iv), ₹ 50,000/- u/s. 80P(2)(c) and ₹ 395471/- u/s. 80P(2)(d) are held as admissible to the appellant. Its claim of deduction of ₹ 539379/- u/s. 80P(2)(iii) of the act in respect of vegetable commission is inadmissible as there was no profit from this activity. This activity has resulted in a loss which has wiped out the profits generated by the CNG and Petrol business. The appellant is therefore not eligible for any deduction u/s. 80P(2)(a)(iii) of the act. Its claim that no expenditure relating to commission income received from members is debited in the P. & L. account is untenable. All expenses pertaining to all other activities have been accounted for separately, i.e. in the accounts maintained individually for each activity. The expenses in the P. & L. account pertained only to the vegetable commission activity. The total deduction u/s. 80P of the act is admissible to the appellant is only ₹ 473695/- [ ₹ 28,224/- + ₹ 3,95,471/- + ₹ 50,000/-]. The total taxable income of the appellant which is gross total income less deduction u/s. 80P(2) of the act works out to ₹ 10,81,712/- [ ₹ 15,55,407/- - ₹ 4,73,695/-). The total taxable income is determined at ₹ 1081710/-. The A.O. is directed to consider this as taxable income of the appellant The aforesaid findings of the ld.CIT(A) is not controverted by the Revenue by placing any material contrary to the finding on record, therefore we do not see any reason to interfere with the order of the ld.CIT(A), same is hereby confirmed. - Decided against revenue.
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