2018 (9) TMI 1823

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....Amit Jain, Senior DR ORDER Kuldip Singh, The appellant, Income-tax Officer, Ward 2, Haridwar (hereinafter referred to as 'the Revenue') by filing the present appeal, sought to set aside the impugned order dated 09.01.2015 passed by Ld. CIT (Appeals), Dehradun qua the assessment year 2009-10 on the grounds inter alia that :- "1. The Ld. CIT(A) erred in law and on facts in allowing the dedu....

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....purchases were made by the assessee in Faridabad whereas his business activities were carried out at Haridwar. AO also made disallowance of Rs. 5,20,550/- on account of violation of provisions of section 40(a)(ia) of the Act and assessed the total income at Rs. 2,57,71,167/-. 3. Assessee carried the matter by way of appeal before the ld. CIT (A) who has deleted the addition made by the AO by all....

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.... the deduction u/s 80IC on account of disallowance of inflated purchases by ld. CIT (A) is concerned, we are of the considered view that when the profits for the purposes of section 80IC were to be calculated as per section 28 to 44BB of the Act, the purchases were also covered under the Act and while calculating the profits of any business, the purchases are also deductible expenditure. When the ....

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....that the assessee has not made this claim in the return is wrong and incorrect. Moreover, when the entire profit of the assessee is exempt u/s 80IC then the assessee is not supposed to enhance the expenditure. So, the ld. CIT (A) has rightly deleted the deduction u/s 80IC made by the AO on account of inflated purchases. 8. So far as question of making deletion of addition of Rs. 5,20,550/- made ....