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2016 (10) TMI 505 - BOMBAY HIGH COURTDeduction under Section 80-O - whether deduction was not allowed on the gross receipts but only on that part of receipts which form part of the total income of the assessee? - Held that:- On reading the statement of case, it is noted that it records that for the earlier Assessment Year, i.e. A. Y. 1982-83, adjustment of expenses should be limited only to the items that have nexus to the earning of the income and restored the issue to the Assessing Officer to determine the same. Notwithstanding the above findings/ directions, the Applicant-Assessee filed a Reference being Reference No.5 of 2000. This on the basis that Section 80AB of the Act would not be applicable for the purpose of computing deduction under Section 80-O of the Act. In the subject Assessment Year, the statement of case does not state that expenses were allocated in a prorata manner without any nexus. This for the reason that according to the Applicant, it is entitled to deduction on gross basis without being governed by Section 80AB of the Act. (Please see the emphasized portion of statement of case). In any case, the present Reference has been made in view of the Reference made for the Assessment Year 1982-83 and only with a view to maintain consistency. The attempt on the part of the Applicant-Assessee is to enlarge the scope of the question which has been referred to us for our opinion by the Tribunal. The issue which has been referred to us for our opinion, is not with regard to allocation of expenditure on a prorata basis but the issue is whether deduction has to be allowed on the basis of the gross receipts or on that part of the receipts which form part of total income of the Applicant-Assessee, i.e. on application of Section 80AB of the Act. - Decided in favour of assessee.
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