2016 (5) TMI 1537

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....ed. 2. The assessee has taken following grounds of appeal in ITA No.273(Asr)/2011 for Asst. Year 2010-11. "(i) That the assessment order as well as the order of Ld. CIT(A) are both against the facts of the case and are untenable under the law. (ii) That the worthy CIT(A) has erred in confirming the addition of Rs. 2,00,000/- on account of disallowance of stone inward cost expenses. The complete details were given and the expenses as claimed should have been allowed in toto and the Ld. CIT(A) was not justified in confirming the same. As such the addition confirmed by Ld. CIT(A) may be deleted Alternatively the addition made is very high and excessive. (iii) Again, worthy the CIT(A) has grossly erred in confirmin....

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.... u/s 80IB may be allowed on finally assessed income." In ITA No. 112(Asr)2016 for Asst. Year 2011-12. (i) That the assessment order as well as the order of the Learned Commissioner of Income Tax (Appeals), Jammu is both against the facts of the case and is untenable under the law. (ii) That the A.O. has grossly erred in making the addition of Rs. 2,00,000/- on account of stone inward cost and again the Ld. CIT(A) has grossly erred in confirming the same. The AO as well as the worthy CIT(A) did not appreciate that these expenses are allowable and should have been allowed in toto. As such, the addition confirmed by the Ld. CIT(A) is not at all called for and the same is liable to be deleted. Alternatively, without prejudi....

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....ee is engaged in the business of stone crushing and as proprietor of M/s. Bhagwati Stone Crusher. He filed his return of income declaring income from business of stone crushing, income from house property etc. The assessee in the returns of income had claimed deduction u/s 80IB for its income from the business of stone crushing, however, Assessing Officer during the assessment proceedings rejected the claim of assessee regarding his exemption u/s 80-IB and besides making addition of the declared profits as not being exempt u/s 80-IB, the Assessing officer made certain other additions out of expenses claimed by assessee in his profit and loss account. The additions on account of disallowance of various expenses worked out to be Rs. 12,30,655....

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....t have any effect on the taxable profits as the entire profits were earned from eligible business and addition if any to the income on account of disallowances of expenses will go to increase the income from eligible business making eligible the exemption u/s 80-IB of the Act. 9. The learned AR, in this respect placed his reliance on the order of Amritsar Bench in the case of Smt. Harbhajan Kaur, Prop. M/s. Sainico Engineers, in ITA No. 331(Asr)/2012 and invited our attention to the findings as contained in para 11 of such order. The learned AR submitted that the said order of Hon'ble Amritsar Bench has not been challenged by the revenue and therefore, has become final. He further submitted that the Hon'ble Amritsar Bench in the case ....

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....tations we find that assessee declared his income as detailed below. (i) Asst. Year 2011-12  Income from the business of stone crushing claimed u/s 80-IB Rs. 1731437.00  Interest income Rs. 2112.00  Income from house property Rs. 8400.00  Income from Honrarium Rs. 70512.00 Gross Total Income Rs. 1885949.00 Less exempt income u/s 80IB -Rs. 1731437.00 Taxable Income  Rs. 154512.0 Rounded off to Rs. 154510/- Asst. Year 2012-13 Income from the business of stone crushing claimed u/s 80-IB Rs. 2000394.00 Interest income Rs. 8257.00 Income from House property Rs. 126000.00 Gross Total Income Rs. 2134651.00   Rs. 2025573 Les....

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.... do not include the income from any other business than the eligible business of stone crushing, therefore, to the business income if any it made on account of disallowances of expenses will only increase income from eligible business which again will be exempt u/s 80IB of the Act. The Hon'ble Amritsar Bench in ITA No.331(Asr)/2013 vide its order dated 6th December, 2013 under similar facts and circumstances has held that disallowance of expenses claimed by assessee from the eligible business will increase its income which again will be exempt u/s 80-IB. The findings of the Hon'ble Tribunal contained in para 11 of such order. "11.We have heard the rival contentions and perused the facts of the case. There is no dispute to the fact ....