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Appeal success: Deductions allowed under Income Tax Act, 1961. The appeal against the order of the Commissioner of Income Tax (Appeals) under section 143(3) of the Income Tax Act, 1961 for the assessment year 2009-10 ...
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Appeal success: Deductions allowed under Income Tax Act, 1961.
The appeal against the order of the Commissioner of Income Tax (Appeals) under section 143(3) of the Income Tax Act, 1961 for the assessment year 2009-10 involved the disallowance of deductions under sections 80P(2)(e) and 80P(2)(d). The Tribunal allowed the appeal in part, remitting the issue of letting out godowns for verification and allowing deduction for external letting but not for internal use under section 80P(2)(e). Additionally, the Tribunal remitted the issue of dividend and interest income back to the Assessing Officer for re-computation in line with past Tribunal directions, allowing the appeal for statistical purposes under section 80P(2)(d).
Issues involved: Appeal against order of CIT(A) u/s 143(3) of the I.T. Act, 1961 for assessment year 2009-10. Grounds raised include disallowance of deductions u/s 80P(2)(e) and u/s 80P(2)(d) of the Income Tax Act.
Deduction u/s 80P(2)(e) - Storage Charges: The assessee claimed deduction u/s 80P(2)(e) for storage income, but AO disallowed it based on High Court judgment that storage was part of business activity, not letting out. CIT(A) confirmed disallowance citing similar past decisions. Tribunal remitted issue of letting out godowns to AO for verification, allowing deduction for external letting but not for internal use. Second limb of the issue was allowed for verification.
Deduction u/s 80P(2)(d) - Dividend and Interest Income: Assessee claimed deduction u/s 80P(2)(d) on dividend and interest income. AO rejected claim as investments were part of business activity. CIT(A) dismissed appeal despite past Tribunal orders in favor of assessee. Tribunal remitted issue back to AO for re-computation in line with past Tribunal directions, allowing the appeal for statistical purposes.
In conclusion, the appeal was partly allowed on both grounds of deduction u/s 80P(2)(e) and u/s 80P(2)(d) of the Income Tax Act.
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