9911796707
TMI Blog2012 (8) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... period 1/4/1995 to 21/2/2002. 2 The appellant has formulated the following questions of law for consideration of this court. 1) Whether on the facts and circumstances of the case and in law the Tribunal was justified in holding that deductions u/s.80IB (10) has to be allowed from the income computed as undisclosed income u/s. 69A of the Income Tax Act,1961? 2) Whether on the facts and circumstances of the case and in law the Tribunal was justified in allowing the claim of deduction u/s.80IB(10) where no such claim is made by the assessee in the return of income for the block period? 3) The appeal is admitted on Question (1) and (2). 4) At the instance of the Advocates for the appellant and the respondent the appeal is taken up f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent contended that the undisclosed income was declared at Rs.7.00 crores only because at the time of making the statement the Director of respondent was unaware that deduction under Section 80IB would be available in respect of respondent's housing projects. The CIT(A) by order dated 17/8/2004 found on facts that the respondent was entitled to benefit of Section 80IB of the said Act. Further, CIT(A) held that in terms of clause (a) of the explanation to Section 158(BB)(1) of the said Act provides that undisclosed income for the block period is to be computed after applying the relevant provisions of the said Act. This would include the provisions of Chapter VIA of the said Act. Section 80IB is a part of Chapter VIA of the said Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unexplained gold valued at Rs.48.72 lacs found in possession of the party was added to the party's income under Section 69, 69A, 69B and 69C of the Act. As the unexplained gold was confiscated the assessee sought a deduction on account of confiscation of gold as a loss. The Court held that such undisclosed /unexplained amounts did not fall under the head of profits and gains of business or profession and therefore, no deduction is available. On the basis of the above decision, it is the contention of Mr. Gupta that no deduction under Section 80IB of the said Act can be made available to the respondent while computing the tax payable under Chapter XIVB of the said Act for the block period 1/4/1995 to 21/2/2002. 8) As against the above, Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undisclosed income- (a) the total income or loss of each previous year shall, for the purpose of aggregation, be taken as the total income or loss computed in accordance with the provisions of [this Act] without giving effect to set off brought forward losses under Chapter-VI or unabsorbed depreciation under sub-section (2) of Section 32; [Provided that in computing deductions under Chapter VI-A for the purposes of the said aggregation, effect shall be given to set off of brought forward losses under Chapter VI or unabsorbed depreciation under sub-section (2) of section 32;]" It would be pertinent to note that the words "this Act" in parenthesis were substituted by the Finance Act of 2002 with retrospective effect from 1/7/1975. Prior t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n from its income under Section 80IB of the Act. In fact, to the same effect is the decision of the Madras High Court in the matter of ANBU Textiles (supra). 11) The further case of the appellant-revenue that in view of section 69A of the said Act the benefit of deduction under Chapter VIA of the said Act would not be available to the respondent-assessee is not well founded. In the present facts it is not the case of the revenue that the money found in possession of the respondent assessee could not be explained and/or its source could not be explained to the satisfaction of the Assessing Officer. In the present case undisclosed income found in the form of cash was explained as having been acquired while carrying on business as a builder a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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