2014 (5) TMI 274

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Section 143(1) of the Income-tax Act, 1961. Thereafter, proceedings under Section 148 were initiated on the ground that deduction under Section 80-O claimed by the assessee was on interest income also. Therefore, to that extent, excess deduction was allowed under Section 80-O. Accordingly, assessment was completed under Section 143(3)/148 on 24th December, 2013 allowing deduction under Section 80-O at Rs. 95,10,196/- as under:- "iii) Under section 80-O   50% of net profit as discussed above.   Net profit as per P&L Account 2,69,07,130/- Add : Donation debited to P&L A/C 11,00,000/- Total profit 2,80,07,130/- Less : Bank interest 89,86,739/-   1,90,20,391/- 50% of 1,90,20,391 95....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt under section 148 and the issue as to the allowability of the deduction under section 80-O was not in dispute or subject matter of reopening and, therefore, the CIT(Appeals) cannot exercise the power of enhancement that too without giving notice of enhancement, which has apparently not been given in this case. We accordingly set aside the later part of the order and restore to the file of Assessing Officer." 4. The Assessing Officer gave effect to the order of the ITAT on 25th November, 2009 wherein he again disallowed the deduction under Section 80-O claimed by the assessee. On appeal by the assessee, the CIT(A), vide order dated 18th June, 2010, accepted the assessee's contention and his observation in paragraph Nos.6 & 7 of the ord....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... receipt of convertible foreign exchange under section 80-O. Nor has it questioned the issue of allowability of deduction. The only issue that remains is how much is the assessee eligible for deduction under section 80-O?" The Revenue, aggrieved with the order of learned CIT(A), is in appeal before us. 5. We have heard the submissions of both the sides and perused relevant material placed before us. After considering the facts of the case and arguments of both the sides, we do not find any infirmity in the order of learned CIT(A). The ITAT, vide order dated 5th September, 2008, has clearly held that in the appeal filed by the assessee, two issues arise - one is deduction under Section 80-O with respect to interest income, and second i....