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2015 (8) TMI 428 - HC - Income TaxDisallowance made under Section 32AB - Investment deposit account - ITAT deleted disallowance - Held that:- No perversity with regard to findings of both the Courts below with regard to conclusion arrived at that the income was earned during the course of business activity. The term "profits of business or profession" is defined under sub-section (3) of Section 32AB. As per that subsection the profit shall be an amount of profit as computed in accordance with the requirements of Part II and III of the Companies Act and increased or reduced by specific inclusion or exclusion provided in 32AB(3) only. The Assessing Officer had no authority to reopen accounts of company which were certified by auditors of company as having been maintained in accordance with the provisions of the Companies Act. The Assessing Officer does not have jurisdiction to go behind net profit shown in profit and loss account except to extent provided in Section 32AB(3). Thus, there is no doubt that the business of the assessee company is an eligible business. The fact that it is shown under a different head of income would not deprive the company of its benefit under Section 32AB. - Decided in favour of assessee.
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