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2015 (3) TMI 350 - AT - Income TaxDeduction u/s 80IB - audit report in Form No. 10CCB was not filed along with the Income Tax Return - Assessment pursuance of research u/s 153A - CIT(A) allowed the deduction - Held that:- When the profits of the eligible project have increased then the consequential statutory impact will be on the amount of deduction u/s 80IB. so when the profits increase, the deduction/ incentive envisaged u/s 80IB increases. On one hand when the revenue has accepted the increase in profit though surfaced due to the search, the impact of the said increase in profit has to be also on the deduction allowable under Section 80IB of the Act, more particularly when the mandate on AO u/s 153A is to compute the total income of assessee. In the light of the aforesaid distinguishable facts, the ratio of Jai Steel cited (2013 (6) TMI 161 - RAJASTHAN HIGH COURT) by the revenue is of no help to the department. In that case, the deduction claimed by the assessee was not in the original return at all and it was made for the first time u/s 153A, which is not the case in hand. It may reemphasized that the assessee’s claim was not a new claim but it was only an enhanced claim which is statutorily linked to the eligible profits which get enhanced as result of search. Therefore we do not find any legal infirmity on the finding of the ld CIT(A) and so confirm the same. We also concur with the conclusion of the ld CIT(A) wherein it is observed that if the disallowance u/s 40A(3) is directly relatable to the profit of the eligible projects, then the deduction u/s 80IB be accordingly recomputed, subject to verification of the records including the seized records.In the result the grounds raised by the revenue for Assessment Year 2005-06 stands dismissed. - decided in favour of assessee. Payments in excess of ₹ 20,000/- disallowed - payment made on the dates when banks were closed due to holiday - Held that:- The facts are not clear as to whether the payments were made on the holidays when the banks were closed. We therefore set aside the impugned order on this issue and remand the same back to the file of AO for fresh adjudication, in accordance with law after providing due and reasonable opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes. Notional interest on the temporary advance given to then director Sh. Arun Kumar Gupta disallowed - Held that:- Issue should also be examined by the AO, as the facts are not clear particularly when it is the contention of the ld AR for the assessee that it was allowed in the original assessment by the AO by considering this fact that the advance was given to the Director for business purpose only.- Decided in favour of assessee for statistical purposes.
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