TMI Blog2009 (12) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... The appeal is filed by the Revenue against the order of the Tribunal raising three questions for our decision. One of the issues pertains to disallowance under section 43B of the IT Act which is belated payment of PF contribution. The Tribunal allowed the claim following decision of the Supreme Court in CIT v . Vinay Cement Ltd. [2007] 213 CTR (SC) 268 because payments were found made before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit set up at Pondicherry. The claim pertains to the previous year relevant for the asst. yr. 2000-01 and therefore, the unamended provision of section 80-IA applies to the assessee. We have heard standing counsel appearing for the appellant and advocate Sri. T.M. Sreedharan appearing for the respondent. 3. During the previous year assessee carried on business in two industrial units, one at Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from one industrial unit against the profit from another. Even though the eligible amount to be claimed under section 80-IA was ₹ 18,12,770 being 25 per cent of the profit of the eligible unit, in the original return, the assessee limited the deduction to ₹ 8,51,697 which was actually the net total income computed after making disallowance under various provisions. In the reassessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntroversy on this proposition because under section 80A(2) total deductions under Chapter VI-A have to be limited to the gross total income of the assessee computed under the provisions of the Act. Therefore, assessee cannot claim deduction under section 80-IA in excess of gross total income computed, no matter eligible amounts may be higher than such income. However, we disapprove the pattern of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the higher authorities allowing it, we direct the officer to rework total income and therefrom allow eligible deduction under section 80-IA(5) of the Act with reference to the profits of the eligible unit, but limiting it to the total income, if the claim amount is higher than such amount. The orders of the Tribunal and the first appellate authority will stand modified as above. - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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