2011 (3) TMI 1647

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....on u/s. 133A, relying on the decision of the Hon'ble ITAT, 'B' Bench, Pune in the case of Mangal Alloy Casting Pvt. Ltd. in ITA No. 779/PN/06. 2. Whether, the income declared during the course of survey action can be said to be income derived from the industrial activity, thereby qualifying for deduction u/s. 80IB". 2. None was present on behalf of the assessee-respondent despite having been duly served with the notice as reported by the Department. On earlier occasion also, assessee was served through D.R. on 17.11.2010 for hearing fixed on 18.11.2010, but no-one appeared. The matter was acconrdingly adjourned to 10.01.2011 for fresh service. We, accordingly, proceeded Ex-parte on the basis of material available on record. 3....

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....Y. 2003-04), order dated 29th August 2008. The Ld CIT(A) has also discussed the decision of Hon'ble Madhya Pradesh High Court in the case of Akhtari Begum & Sons (Supra) relied upon by the A.O. 5. Having gone through the cited decisions, we find that the issue raised in the Ground is fully covered by the decision of Co-ordinate Bench of the Tribunal in the case of Mangal Alloy Casting Pvt. Ltd. v/s. ACIT (Supra) holding as under : "7. We are in considedred agreement with the proposition advanced by the learned counsel and his contention that, on the facts of this case, it is reasonable to conclude that the income declared during survey proceedings was business income in nature. What has been found is business assets, whether by ....

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....tional income offered by the assessee during the course of survey on account of excess cash, excess stock and inflated expenses was eligible for deduction u/s. 80 IB of the Act. The action of the Ld CIT(A) in directing the A.O to recompute the deduction allowoable u/s. 80 IB(3) (ii) of the Act after including additional income offered by the assessee, thus does not call for any interference. The same is upheld. 7. The decision of Hon'ble Madhya Pradesh High Court in the case of Akhtari Begum & Sons (Supra) is having distibguishable facts and different issue. In that case, assessee was involved in the business of plying passenger bus, and after rejecting assessee's books, the A.O deducted the Net Profit at the rate of 20%. The Ld CIT(A) t....