TaxTMI 
TaxTMI 
2012 (11) TMI 933
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....t Rs. Nil after claiming deduction u/s 80IB (10) of the Income Tax Act, 1961 (in short the Act). During the course of assessment proceedings, the AO on going through the computation of total income observed that profit of the project as per Profit and Loss Account is Rs.51,34,648/- and to this the assessee has added the amount of TDS deposited later than due date Rs.13,35,990/- and TDS not deposited as per tax audit report Rs.81,81,030/- aggregating to Rs.95,17,020/- and thus on the gross total income Rs.1,46,51,668/-, the assessee has claimed deduction u/s 80IB(10) of the Act Rs.1,46,51,668/-. On being asked as to why deduction u/s 80IB(10) on the amount of Rs.95,17,020/- should not be disallowed, it was interalia submitted by the assessee....
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.... from housing project and accordingly while distinguishing the decision in the case of Liberty India (supra) held that the appellant is eligible for deduction u/s 80IB(10) of the Act on enhanced profit by disallowing the expenditure of Rs.95,17,020/- with a direction to AO to consider the claim of deduction of allowability of deduction u/s 80IB(10) in subsequent year if same is having consequential effect in this year or the assessment year 2007-08. 4. Being aggrieved by the order of the ld. CIT(A), the Revenue is in appeal before us taking following grounds of appeal : "I. On the facts and the circumstances of the case, and law, the Learned CIT(A) erred in allowing deduction u/s 80IB of the IT Act to the assessee on disallowances mad....
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....d 14.5.2010 and (c) ITO V/s M/s Shri Ganesh Developers and Builders in ITA No.4328/Del/2009 (AY:2006-07) dated 11.3.2011. He further submits that the decisions relied on by the ld. DR in Millenium Writing Products (P.) Ltd.(supra), the Tribunal has remitted the matter back to the AO and the other decisions in the case of M/s Kashmir Tubs (supra), the Tribunal in the case, of S.B. Builders & Developers (supra) while deciding the issue in favour of the assessee has distinguished the said decision in paragraph 18 of its order, therefore, both the decisions relied on by the ld. DR are distinguishable and not applicable to the facts of the present case. He, therefore, submits that the order passed by the ld. CIT(A) be upheld. 7. We have caref....
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....s 80IB(10), he allowed deduction only of Rs.3,76,78,403/- and arrived at a total income of Rs.4,50,12,485/- on which the tax was charged. On appeal, the ld. CIT(A) upheld the action of the AO. On further appeal, the Tribunal after considering the relevant provisions of Act and various decisions including the decision of the Hon'ble Supreme Court relied on by the AO in Liberty India (supra) and the decision of the Tribunal relied on by the ld. DR in M/s Kashmir Tubs (supra) held that the assessee would be entitled to the deduction in respect of the profits of Rs.8,26,90,888/- computed as profit of the housing project for the assessment year under consideration. 9. In M/s Shri Ganesh Developers and Builders (supra), it has been held by the....
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....penditure is disallowed by Assessing Officer in the absence of non-deposit of TDS within the due date. First of all, it is to be mentioned that neither the Assessing Officer nor CIT(A) has discussed why this item is not eligible for deduction under section 80IB or why it is eligible. But seeing dates of payments of TDS, it seems that these are paid within due date of filing of return of income, the assessee even otherwise is eligible for deduction and the Assessing Officer cannot invoke the provisions of section 40(a)(ia) of the Act for making disallowance, We are of the view that, let the Assessing Officer consider this issue in the light of the allowance of deduction of this expenditure as the assessee has made payment of this TDS within ....