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2017 (9) TMI 1410 - HC - Income TaxExemption under section 10A - contention of the Revenue that in computing the deduction u/s 10A addition made on account of the disallowance of the provident fund/ESIC payments ought to be ignored - Held that:- The disallowance on the provident fund/ESIC payments has been made because of the statutory provisions section 43B in the case of the employer's contribution and section 36(v) read with section 2(24)(x) in the case of the employer's contribution which has been deemed to be the income of the assessee. The plain consequence of the disallowance and the add back that has been made by the Assessing Officer is an increase in the business profits of the assessee. The contention of the Revenue that in computing the deduction under section 10A the addition made on account of the disallowance of the provident fund/ESIC payments ought to be ignored cannot be accepted. No statutory provision to that effect having been made, the plain consequence of the disallowance made by the Assessing Officer must follow. The second question shall accordingly stand answered against the Revenue and in favour of the assessee. We do not think that an identical argument, and more or less relying on the same provisions, made before us by Mr. Pinto can be accepted. It cannot be accepted because the Tribunal's reliance on Gem Plus (2010 (6) TMI 65 - BOMBAY HIGH COURT ) is not erroneous, nor has the Tribunal misdirected itself in law. Its view, therefore, cannot be termed as vitiated by any error of law apparent on the face of record or perversity warranting our interference in further appellate jurisdiction. - Decided against revenue
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