9911796707
TMI Blog2025 (5) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... 80IC of Rs. 11,02,77,516/-without appreciating the facts. 2. On the facts and circumstances of the case, the Ld.CIT(A) has erred in allowing deduction u/s 80IC against the income declared under other heads of income other than income from eligible business falling under the heads profit and heads of Business & Profession. 3. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal. 3. Facts of the case may be summarised as that assessee company filed its original return of income on 29.11.2016 by declaring a total income of Rs. 28,44,31,210/- for the A.Y. 2016-17 which was processed under Section 143(1) of the Act and while processing the same, the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Per contra, the Ld. AR submitted that the Ld. ACIT, CPC while passing order under section 143 (1) allowed the deduction under section 80IC of Rs. 4,75,56,981/- instead of Rs. 15,78,34,497/- to Rs. 27,964270/- + Rs. 12,98,70,227/-and submitted that main contention for reduction that the deduction under section 80IC allowed to the extent of the income from business or profession as per section 80AB of the Act. 8. The Ld. AR further submitted the Ld. ACIT CPC while passing the order u/s 143(1) has allowed the deduction u/s 80IC of Rs 4,75,56,981/- instead of Rs. Rs 15,78,34,497/- as claimed by the assessee company in the return filed on the basis of the profit from the 2 eligible units i.e. unit 2 & 3 which comes to Rs 15,78,34,497/- (2796 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the total profit) Unit No.2 9,32,14,233 12,98,70,227/- (30% of the total profit) Unit No.3 43,29,00,756 Although eligible unit but loss is to be carried forward and to be set off from the income of this unit in the next years Unit No.4 and 5 (2,97,94,955) Not eligible Head Office (57,209) Not eligible Others 11,84,76,156/- 15,78,34,497/- Total 4,75,56,981/- Thus, the deduction allowable from eligible units comes to RLs.157834497/-. Computation of Income for the year has been worked out as under : Particulars Amount Income from PGBP 4,75,56,981/- Income from House property 63,00,000 Income from other sources 38,84,08,273 Gross : Total Income (GTI) 44,22,65,704 Less : Deduction u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the business income only. 11. The Learned AR relied upon the judgment of Hon'ble Supreme Court in the case of CIT vs Reliance Energy Ltd., [2021] 127 taxmann.com 69 (SC), in which case the eligible deduction u/s 80IA was Rs 546,26,01,224/-. However, the Net income from business was Rs 355,74,73,451/- and the gross total income was Rs 397,37,76,178/- including income from other sources of Rs 41,62,96,727/-. The AO restricted the deduction u/s 80IA to the extent of the net income from business by applying provision of the section 80AB of the Act. The Hon'ble Supreme court held that assessee is entitled to the deduction u/s 80IA to the extent of the GTI i.e. Rs 397,37,70,178/- including the income from other sources of Rs 41,62,96 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the fact of the case under consideration and the relied upon case are similar, the Hon'ble Apex Court decision is squarely applicable to the appellant case. Therefore, AO is directed to allow the deduction u/s. 80IC to the extent of GTI including the income from other source. 14. We have heard the rival contentions and perused the material available on record. On the basis of foregoing discussions and following binding judicial precedent cited hereinbefore, we do not find any legal infirmity in the impugned order which enables us to interfere with findings of the Learned CIT(A). Hence, the appeal of the revenue is liable to be dismissed. 15. Consequently, the appeal of the Revenue is hereby dismissed. Order pronounced in the Open ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
