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2017 (9) TMI 472 - AT - Income TaxDeduction u/s 80P on the enhanced profit - “gross total income” - Held that:- The income which has been computed by the AO after making certain additions/disallowances has to be taken as eligible for deduction under section 80P(2)(a)(i) if it complies the conditions stipulated therein. Somewhat similar issue has been decided in the case of M/s. S.B. Builders & Developers vs. Income Tax Officer[2010 (5) TMI 686 - ITAT MUMBAI] wherein decided similar issue in the context of deduction under section 80IB(10) in respect of profits derived from the undertaking developing and building housing project. In the assessment order, the AO made disallowances under section 40(a)(ia) and enhanced the profit of the said undertaking; but he allowed deduction under section 80IB(10) only with reference to the profit shown in the return of income. The Tribunal, after considering the Supreme Court’s judgement in Cambay Electric Supply Industrial Co. Ltd. vs. CIT (1978 (4) TMI 1 - SUPREME Court) has held that profit “derived” for the purposes of section 80- IB(10) would mean profit as computed in the manner laid down in the Act, i.e. as per the provisions of Section 30 to 43D. - Decided against revenue
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