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2017 (9) TMI 472

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..... er, the AO made disallowances under section 40(a)(ia) and enhanced the profit of the said undertaking; but he allowed deduction under section 80IB(10) only with reference to the profit shown in the return of income. The Tribunal, after considering the Supreme Court’s judgement in Cambay Electric Supply Industrial Co. Ltd. vs. CIT (1978 (4) TMI 1 - SUPREME Court) has held that profit “derived” for the purposes of section 80- IB(10) would mean profit as computed in the manner laid down in the Act, i.e. as per the provisions of Section 30 to 43D. - Decided against revenue - ITA No. 3939 /Mum/2017 - - - Dated:- 4-9-2017 - Shri P K Bansal, Vice President And Shri Pawan Singh, Judicial Member Appellant by : Shri V. Vidhyadhar Respon .....

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..... d 31.03.2014 in appeal No. CIT(A)-33/IT/322/2013-14. The matter travelled to the Tribunal. The Tribunal allowed assessee s appeal and reversed the CIT(A) s order whereby he had held certain receipts as income from other sources not eligible for deduction under section 80P(2). While giving effect to the CIT(A) s appeal order under section 143 r.w.s. 250 of the Income Tax Act the AO allowed the deduction under section 80P with reference to business income as per the return of income filed in accordance with assessee s business income. Hence the income was determined after taking the disallowance at ₹ 1,08,93,180/- and the assessee went in appeal claiming the deduction under section 80P in respect of the disallowances/deduction made unde .....

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..... er section 80P, the profits as computed under the provisions of the Act shall alone be deemed to be the income received from the activity specified in section 80P(2)(a)(i) and included in the gross total income from which the deduction under section 80P(1) is to be allowed. Thus, it is only the finally assessed business income had to be considered for the purpose of allowing deduction under section 80P(2)(a)(i), notwithstanding the amount of business profit declared in the return of income. Therefore, in our view the income which has been computed by the AO after making certain additions/disallowances has to be taken as eligible for deduction under section 80P(2)(a)(i) if it complies the conditions stipulated therein. Somewhat similar issue .....

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