TMI Blog2018 (4) TMI 1615X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee u/s 80IC of the IT Act, 1961. The above circular explains the situation well. In our considered opinion the case of the assessee is squarely covered by the above noted circular. In view of the above the assessee is entitled to claim deduction U/s 80IC on the enhanced profit under the head business income for the eligible unit - Decided in favour of assessee. - ITA No. 3564/Del./2010 - - - Dated:- 16-4-2018 - Shri Bhavnesh Saini And Shri L.P. Sahu, JJ. Assessee by Sh. Rakesh Gupta, Adv., Sh. Shantanu Jain, Adv. Revenue by Sh. Kaushlendra Tiwari, Sr. DR ORDER L.P. Sahu, This is an appeal filed by the assessee against the order of the CIT(A)-XII, New Delhi for the assessment year 2006-07 dated 15.03.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion disallowed u/s 43B for the provision of bonus gratuity etc. The Ld. Assessing Officer disallowed the claim by holding that these expenditures are in nature of statutory liabilities and the assessee cannot benefit by making default of statutory liability if the assessee s contention is accepted. The assessee would be benefiting by making defaults in payment of statutory dues and liabilities and the amount has wrongly been allocated to the Baddi units. In addition to this, the ld. Assessing officer made disallowance on other issues also. Feeling aggrieved from the order of the assessing officer the assessee appealed before the ld. CIT(A) and the ld. CIT(A) also partly allowed the appeal of the assessee and sustained the addition made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 43B restricts for the non-payment of statutory dues which are required to be paid as per the applicable law or within the due time of the filing of return of income. If such practice is allowed for deduction as per Chapter VI A, the assessee would be benefitted by making defaults in payments to the statutory dues. Therefore, the lower authorities have rightly disallowed the claim of deduction made by the assessee u/s 80IC. 8. After hearing both the sides and perusing the entire material available on record and orders of the authorities below , we find that the ld. AO has disallowed deduction u/s 43B and denied to make deduction u/s 80IC on the above amount of ₹ 35,77,659/- as business profit U/s 80IC. The above addition has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred by assessee for the purpose of developing a housing project was not allowable on account of non-deduction of TDS under law, such disallowance would ultimately increaseassessee sprofits frombusiness of developing housing project. Theultimateprofits of assessee after adjusting disallowance under section 40(a)(ia) of the Act would qualify for deduction under section 80-IB of the Act. This view was taken by the courts in the following cases: Income-tax Officer - Ward 5(1) vs. Keval Construction, Tax Appeal No. 443 of 2012, December 10, 2012, Gujarat High Court. Commissioner of Income-tax-IV, Nagpur vs. Sunil Vishwambharnath Tiwari, IT Appeal No. 2 of 2011, September 11, 2015, Bombay High Court. (ii) If deduction under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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