2025 (5) TMI 202

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....n deleting the addition on account of deduction u/s 80IC of Rs. 11,02,77,516/-without appreciating the facts. 2. On the facts and circumstances of the case, the Ld.CIT(A) has erred in allowing deduction u/s 80IC against the income declared under other heads of income other than income from eligible business falling under the heads profit and heads of Business & Profession. 3. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal. 3. Facts of the case may be summarised as that assessee company filed its original return of income on 29.11.2016 by declaring a total income of Rs. 28,44,31,210/- for the A.Y. 2016-17 which was processed unde....

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....ofession and hence ground raised by the revenue deserves to be allowed. 7. Per contra, the Ld. AR submitted that the Ld. ACIT, CPC while passing order under section 143 (1) allowed the deduction under section 80IC of Rs. 4,75,56,981/- instead of Rs. 15,78,34,497/- to Rs. 27,964270/- + Rs. 12,98,70,227/-and submitted that main contention for reduction that the deduction under section 80IC allowed to the extent of the income from business or profession as per section 80AB of the Act. 8. The Ld. AR further submitted the Ld. ACIT CPC while passing the order u/s 143(1) has allowed the deduction u/s 80IC of Rs 4,75,56,981/- instead of Rs. Rs 15,78,34,497/- as claimed by the assessee company in the return filed on the basis of the profit fro....

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....ction allowable u/s. 80IC from eligible units Unit No.1 (56,71,82,002) 2,79,64,270/- (30% of the total profit) Unit No.2 9,32,14,233 12,98,70,227/- (30% of the total profit) Unit No.3 43,29,00,756 Although eligible unit but loss is to be carried forward and to be set off from the income of this unit in the next years Unit No.4 and 5 (2,97,94,955) Not eligible Head Office (57,209) Not eligible Others 11,84,76,156/- 15,78,34,497/- Total 4,75,56,981/-   Thus, the deduction allowable from eligible units comes to RLs.157834497/-. Computation of Income for the year has been worked out as under : Particulars Amount Income from PGBP 4,75,56,981/- In....

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....n 80IA by treating "eligible business" as the only source of income. Subsection (5) cannot be pressed into service for limiting the deduction under subsection (1) to the business income only. 11. The Learned AR relied upon the judgment of Hon'ble Supreme Court in the case of CIT vs Reliance Energy Ltd., [2021] 127 taxmann.com 69 (SC), in which case the eligible deduction u/s 80IA was Rs 546,26,01,224/-. However, the Net income from business was Rs 355,74,73,451/- and the gross total income was Rs 397,37,76,178/- including income from other sources of Rs 41,62,96,727/-. The AO restricted the deduction u/s 80IA to the extent of the net income from business by applying provision of the section 80AB of the Act. The Hon'ble Supreme co....