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2019 (4) TMI 1438 - HC - Income TaxDeduction u/s 80IC on the entire eligible income - deduction u/s 80IC denied by the AO on increased profit on allegation of inflated purchases - HELD THAT:- Deduction u/s 80IC is, admittedly, available to the undertaking of the assessee. The deduction therein is 100% of the profits. As has been held both by the CIT (Appeals), and the Tribunal, even if a part of the purchases made by the assessee is held ineligible for deduction it would only result in an increase in the profits of the undertaking; and, since the entire profits of an undertaking is eligible for deduction u/s 80IC it mattered little whether or not a portion of the purchases, effected by the assessee, was disallowed. While we are satisfied that the deduction allowed by the CIT (Appeals), as confirmed by the Tribunal, does not necessitate interfere in an appeal u/s 260A as noted by the Tribunal, in the order under appeal, the assessee, in the present case, had claimed deduction towards purchases made by him. These deductions were disallowed by the Assessing Authority. Since the assessee had made such a claim for deduction, the Tribunal has rightly held that Section 80A(5) of the Act is not applicable. Scope of Section 260A - substantial question of law - HELD THAT:- Interference, u/s 260A of the Act, is justified only if the appeal gives rise to a substantial question of law. It is only if the findings recorded by the Tribunal, on facts, is based on no evidence, or the findings are perverse, would it give rise to a substantial question of law warranting interference in proceedings u/s 260A. We find no such infirmity in the order under appeal.
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