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2016 (5) TMI 1537 - ITAT AMRITSARDeduction u/s 80-IB - whether the business income declared by assessee included income from eligible business? - HELD THAT:- Figures prove that the assessee had its business income from business of stone crushing only as the other income claimed in the return of income is on account of income from the house property and honorarium and interest as noted by the AO - Income of the assessee for business do not include the income from any other business than the eligible business of stone crushing, therefore, to the business income if any it made on account of disallowances of expenses will only increase income from eligible business which again will be exempt u/s 80IB. In HARBHAJAN KAUR, PROP. [2013 (12) TMI 1559 - ITAT AMRITSAR] under similar facts and circumstances has held that disallowance of expenses claimed by assessee from the eligible business will increase its income which again will be exempt u/s 80-IB. Increase in income of the assessee due to additions will only increase income which again will be exempt u/s 80IB of the act. The contention of learned DR that the Amritsar Bench had passed a perverse order as the assessee cannot be allowed benefit of exemption u/s 80-IB on the disallowances do not hold any force in view of the fact that the disallowance of expenses will automatically increase the income of assessee from eligible business as the additions has been made from the expenses incurred during running of such eligible business and therefore the increased income can only be attributed to the eligible business of the assessee. In view of the above respectfully following the order of Amritsar Bench we accept the alternative contentions of learned AR that additions even if sustained will not have any impact on the taxable profits as the sustenance will only increase the profits eligible for deduction u/s 80-IB. - Appeals filed by the assessee are allowed.
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