TaxTMI 
TaxTMI 
2018 (4) TMI 1615
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....t be reduced from Gross Total Income while computing deduction u/s 80IC on the ground that the assessee can not benefit out of the defaults made u/s 43B." 2. Brief facts of the case are that the assessee filed return of income on 29.11.2006 declaring an income of Rs. 1,77,45,900/-. The case was selected for scrutiny and statutory notices were issued to the assessee. The assessee was engaged in the business of manufacturing and selling of a range of products in the power back-up industry such as inverters, UPS & batteries, as in last year. 3. During the course of scrutiny proceedings it was observed by the assessing officer that the assessee has worked out gross total income of Rs. 22,96.48,192/- and deduction has been claimed by the asses....
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....e assessee is legally entitled to the claim of deduction u/s 80IC on the disallowance made by the assessing officer under the profit and gains of business or profession. The disallowance has been made by assessing officer as per section 43B which is a disallowance under the head profit and gains of business or profession. The deduction u/s 80IC is available only on the business income computed as per the provisions of the Income Tax Act. 1961. He also referred to section 80 IC and he relied on the following case laws :- * ITO vs. Kalbhor Gawade Builders (2013) 89 DTR (Pune trib) 185 dated 30.10.2012. * DCIT vs. Magarpatta Township Development & Construction Co. (2012) 79 DTR (Pune Trib) 150 dated 18.09.2012. * S B Builders & Developme....
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.... under Chapter VI A on the additions made by the authorities below under the head profit and gains of a business activity which is as under :- "Subject: Chapter VI-A deduction on enhanced profits- Reg. Chapter VI-A of the Income-tax Act, 1961 ("the Act"), provides for deductions in respect of certain incomes. In computing the profits and gains of a business activity, the Assessing Officer may make certain disallowances, such as disallowances pertaining to sections 32, 40(a)(ia), 40A(3), 43B etc., of the Act. At times disallowance out of specific expenditure claimed may also be made. The effect of such disallowances is an increase in the profits. Doubts have been raised as to whether such higher profits would also result in claim for a hig....
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....Ltd., I.T.Appeal No.248 of 2015, May 03, 2016, Allahabad High Court. The above views have attained finality as these judgments of the High Courts of Bombay, Gujarat and Allahabad have been accepted by the Department. 3. In view of the above, the Board has accepted the settled position that the disallowances made under sections 32, 40(a)(ia), 40A(3), 43B, etc. of the Act and other specific disallowances, related to the business activity against which the Chapter Vl-A deduction has been claimed, result in enhancement of the profits of the eligible business, and that deduction under Chapter VI-A is admissible on the profits so enhanced by the disallowance. 4. Accordingly, henceforth, appeals may not be filed on this ground by officers of....