2012 (7) TMI 1141

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pellant by : Shri K. Gnana Prakash Respondent by : Shri K.C. Devdas ORDER PER ASHA VIJAYARAGHAVAN, J.M.: This appeal filed by the Revenue is directed against the order of CIT(A)-II, Hyderabad, dated 14/10/2011 for the assessment year 2008-09. 2. Briefly the facts of the case are that the assessee company is engaged in construction business of housing projects and real estate. The AO....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2009 and preferred an appeal before the Hon'ble High Court in order to keep the issue alive, the amount of expenditure incurred in cash is disallowed u/s 40A(3) treating the same as deemed income unrelated to profits of business. Accordingly, the same was not considered by the AO as eligible for deduction u/s 80IB. 3. Aggrieved by the order of the AO, the assessee carried the matter in appeal b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lowance made by the AO u/s 40A(3) would enhance the profits of the business and therefore the assessee is entitled to deduction u/s 80IB on the enhanced profit. 5. Aggrieved by the order of the CIT(A), the revenue is in appeal before us raising the following grounds of appeal:- "1. The order of the ld. CIT(A) is erroneous on facts and in law. 2. The CIT(A) erred in law in hold....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....(1)(v)r.w.s. 2(24)(x) in the case of the employee's contribution which have been deemed to be the income of the assessee- plain consequence of the disallowance and the add back that has been made by the AO is an increase in the business profits of the assessee - Exemption under section 10A is allowable with reference to such enhanced income." 7. In the case of CIT Vs. Allied Industries 229 CTR ....