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2016 (4) TMI 858 - AT - Income TaxDisallowance of deduction u/s.80IB(10) - Held that:- From the details on record it is not disputed that the assessee is entitled to be allowed deduction under section 80 IB(10) in respect of its business income derived from its building, construction and development activities from the earlier assessment year 2006-07 itself. We find from a perusal of the decision of the Co-ordinate Bench in the case of M/s. Meha Medicure [2012 (3) TMI 517 - ITAT MUMBAI] that the assessee would be entitled to enhanced deduction under section 80 IB(10) of the Act to the extent the assessed business income of the assessee is enhanced by virtue of disallowances that go to enhance its profits and would be eligible for full deduction under section 80 IB(10) of the Act, which provides for deduction from the profits and gains from the eligible business. Thus we hold and direct that the assessee would be entitled to deduction under section 80 IB(10) of the Act to the extent of the assessee’s assessed business income of ₹ 2,64,65,160/-, determined in the order of assessment dated 14/12/2009 for assessment year 2007-08 and which has been enhanced thereto by virtue of the disallowance of compensation of ₹ 8,85,750/-, which would go to enhance the profits of the assessee’s eligible business. - Decided in favour of assessee
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