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2018 (6) TMI 1567 - AT - Income TaxDeduction u/s. 80IB(11A) on the portion of the eligible business profit enhanced on account of disallowances under s. 40A(3) - Held that:- Enhanced deduction under s.80IB(11A) owing to increase in eligible profits in view of the disallowances made u/s 43B amounting to ₹ 42,07,953/-. It is the case on behalf of the assessee that the assessee is eligible for corresponding deduction under s.80IB(11A) on account of disallowances made in the assessment 40A(3) and 43B of the Act since the eligible profit stood enhanced due to such disallowance. As submitted on behalf of the assessee, we find that CBDT has addressed the aforesaid issue in favour of the assessee as per its Circular no.37/2016 dated 2nd November, 2016. As per the aforesaid circular, the Board has accepted the proposition that disallowances so made under s.40A(3), 43B etc. of the Act related to business activity would be eligible for chapter VI-A deduction in view of the enhancement of the profits of the eligible business. In view of the CBDT Circular, the controversy stands settled in view of the assessee. - Decided in favour of assessee.
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