TMI Blog2012 (10) TMI 1110X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout appreciating the accounting and law of incentives being given for the development of the State of Jammu Kashmir and to establish industries in a difficult terrain ridden with terrorism and accordingly upholding the order of the Assessing Officer. 2. The appellant denies his liability to tax and interest as determined and computed by the Ld. AO and the manner in which it is so determined or computed and so upheld by the ld. CIT(A). 3. Without prejudice to this generality, the ld. CIT(A) has erred on facts and in law in upholding the following impugned additions made to the income of the assessee by the ld. AO: a) ₹ 3,77,23,123/- on account of disallowance of deduction claimed u/s 80IB on the ground that these are the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the department. 2. At the time of hearing Sh. Vineet Garg, Advocate, the ld. counsel for the assessee stated that there are mainly three effective grounds of appeal raised by the assessee. As regards the disallowance of deduction claimed u/s 80IB of I.T.Act, on the ground that these are the profits attributable to excise duty refund and not derived from the manufacturing activity, he stated that this issue is squarely covered in favour of the assessee by the decision of the Hon'ble Jurisdictional High Court of J K in the case of Shree Balaji Allows v. CIT and Another (2011) 333 ITR 335 (J K). He further requested that in view of the aforesaid decision of the of Hon ble Jurisdictional High Court, disallowance of deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pute stands already adjudicated and decided in favour of the assessee by the the decision of the ITAT, Amritsar Bench, in the case of M/s. Sun Pharmaceuticals ITA No.184(Asr)2009 for the assessment year 2005-06 dated 11.06.2010. Thus, respectfully following the aforesaid decision of the ITAT, Amritsar Bench, we allow this ground of appeal of the assessee by holding that deduction u/s 80IB of the Act is allowable on the amount of enhanced income in view of the disallowance made u/s 40(a)(ia) of the Act. 6. The Ld. counsel for the assessee finally stated that the issue regarding disallowance of deduction u/s 80IB of I.T.Act, on account of interest received on FDRs, which according to the AO is not profits derived from manufacturing activit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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