TMI Blog2016 (5) TMI 1537X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Amritsar Bench had passed a perverse order as the assessee cannot be allowed benefit of exemption u/s 80-IB on the disallowances do not hold any force in view of the fact that the disallowance of expenses will automatically increase the income of assessee from eligible business as the additions has been made from the expenses incurred during running of such eligible business and therefore the increased income can only be attributed to the eligible business of the assessee. In view of the above respectfully following the order of Amritsar Bench we accept the alternative contentions of learned AR that additions even if sustained will not have any impact on the taxable profits as the sustenance will only increase the profits eligible for deduction u/s 80-IB. - Appeals filed by the assessee are allowed. - I.T.A No. 273(Asr)/2015, I.T.A No. 112(Asr)/2016 - - - Dated:- 16-5-2016 - Sh. A.D.Jain, Judicial Member And Sh. T.S. Kapoor, Accountant Member Appellant by: Sh. P.N.Arora (Adv.) Respondent by: Sh. S.S.Kanwal (DR.) ORDER T. S. Kapoor (AM): These are two appeals filed by assessee against the separate orders of learned CIT(A), dated 13.05.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further the deduction claimed u/s 80IB may be allowed on finally assessed income. In ITA No. 112(Asr)2016 for Asst. Year 2011-12. (i) That the assessment order as well as the order of the Learned Commissioner of Income Tax (Appeals), Jammu is both against the facts of the case and is untenable under the law. (ii) That the A.O. has grossly erred in making the addition of ₹ 2,00,000/- on account of stone inward cost and again the Ld. CIT(A) has grossly erred in confirming the same. The AO as well as the worthy CIT(A) did not appreciate that these expenses are allowable and should have been allowed in toto. As such, the addition confirmed by the Ld. CIT(A) is not at all called for and the same is liable to be deleted. Alternatively, without prejudice to the above, the addition made is very high excessive. (iii) That again the Learned C1T(A) has grossly erred in confirming the addition of ₹ 1,50,000/- out of the addition of ₹ 2,50,000/- made by the AO under the head Carriage Expenditure . The A.O. as well as the worthy CIT(A) did not appreciate that all these expenses pertains to business. As such, no addition is at all called for and the addition sust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled an application for adjournment but while going through the files and material on record, we found that the appeals can be disposed off, therefore, the learned AR was directed to proceed with his arguments. 7. The learned AR, first took up appeal in ITA No.273(Asr)/2015 for A.Y.2010-11 and invited our attention to various submissions made before Assessing Officer and learned CIT(A)and submitted that all the expenses against which the Assessing Officer had made disallowances and against which learned CIT(A) had confirmed were vouched and duly entered into books of account and there was no reason for learned CIT(A) to confirm part addition. 8. Without prejudice to the above, the learned AR submitted that even otherwise the income of the assessee was exempt u/s 80-IB, therefore, the increased income due to disallowances made by Assessing Officer again is exempt u/s 80-IB and therefore, otherwise also the addition cannot have any effect on the taxable profits as the entire profits were earned from eligible business and addition if any to the income on account of disallowances of expenses will go to increase the income from eligible business making eligible the exemption u/s 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 70512.00 Gross Total Income ₹ 1885949.00 Less exempt income u/s 80IB -₹ 1731437.00 Taxable Income ₹ 154512.0 Rounded off to ₹ 154510/- Asst. Year 2012-13 Income from the business of stone crushing claimed u/s 80-IB ₹ 2000394.00 Interest income ₹ 8257.00 Income from House property ₹ 126000.00 Gross Total Income ₹ 2134651.00 ₹ 2025573 Less exempt income u/s 80IB ₹ 2000394 Less exemption u/s 80C ₹ 25179 Taxable Income ₹ 109078.00 Rounded off to ₹ 109080/- The above figure in computation sheets are also verifiable from P L accounts of the assessee. The assessee in his P L account of ston ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing deduction u/s 80IB of the Act. Therefore, we direct the A.O to allow deduction u/s 80-IB of the Act, in view of the our decision mentioned hereinabove. Thus, ground No.4 of the assessee appeal is allowed. The facts and circumstances in the present case are similar as facts in the ITA No. 331(Asr)/2013, therefore, respectfully following the orders of Amritsar Bench, we hold that the increase in income of the assessee due to additions will only increase income which again will be exempt u/s 80IB of the act. The contention of learned DR that the Amritsar Bench had passed a perverse order as the assessee cannot be allowed benefit of exemption u/s 80-IB on the disallowances do not hold any force in view of the fact that the disallowance of expenses will automatically increase the income of assessee from eligible business as the additions has been made from the expenses incurred during running of such eligible business and therefore the increased income can only be attributed to the eligible business of the assessee. In view of the above respectfully following the order of Amritsar Bench we accept the alternative contentions of learned AR that additions even if sustained will ..... 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