Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1823 - AT - Income TaxDeduction u/s 80IC on account of disallowance of inflated purchases - Revenue said that when the assessee has not made any claim in the return of income for the amount claimed as deduction, the deduction cannot be allowed in view of the provisions contained u/s 80A (5) - HELD THAT:- The assessee has certainly made the claim in the return as the AO himself shown the income from business at ₹ 3,36,83,304/- and in these circumstances, the deduction u/s 80IC is allowed on profit. So, the contention of the Revenue that the assessee has not made this claim in the return is wrong and incorrect. When the entire profit of the assessee is exempt u/s 80IC then the assessee is not supposed to enhance the expenditure. CIT (A) has rightly deleted the deduction u/s 80IC made by the AO on account of inflated purchases. - Decided against revenue. Deduction-u/s 80IC on account of disallowance u/s 40(a)(ia) - according to the provisions of Section 80A(5) where assessee fails to make claim in the return of income for deduction u/s 80IC, no deduction is allowable - HELD THAT:- When the entire profit is deductible u/s 80IC, the disallowance u/s 40(a)(ia) would not make any difference as it would ultimately make the assessee eligible for its entire profit deductible u/s 80IC. Moreover, Revenue itself vide Circular No.37/2016 dated 02.11.2016 clarified that the ultimate profit of the assessee after adjusting disallowance u/s 40(a)(ia) would qualify for deduction under Chapter VI on the profits so enhanced by disallowance. So, in these circumstances, we find no illegality or perversity in the deletion of addition made by the ld. CIT (A) made u/s 40(a)(ia) by the AO. - Decided against revenue.
|