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Issues involved:
The judgment deals with the disallowance of deduction u/s 80IB of the Income Tax Act for the assessment year 2006-07. Issue 1: Disallowance of deduction u/s 80IB: The appellant filed its return of income after the specified due date u/s 139(1) of the Act. The appellant argued that the CBDT order extended the due date for filing the return of income for corporate assessees in the state of Gujarat. The assessing officer did not accept this contention, stating that the extension did not apply to Daman, where the appellant was based. The CIT(A) held in favor of the appellant, considering them as an income tax assessee in Gujarat. The Tribunal cited a similar case where the issue was decided in favor of the assessee, emphasizing that the jurisdiction of the assessing authority at Daman falls within Gujarat. The Tribunal upheld the CIT(A)'s decision, stating that no interference was warranted as the issue was already settled in favor of the assessee. Issue 2: Disallowance u/s 40(a)(ia) and deduction u/s 80IB: The revenue challenged the CIT(A)'s decision to allow deduction u/s 80IB on the disallowance u/s 40(a)(ia), arguing that it would lead to double benefit for the assessee. The Tribunal referred to a previous decision where it was held that even if an addition is sustained under section 40(a)(ia), the assessee would still be entitled to deduction u/s 80IB as it pertains to business profit. The Tribunal upheld the CIT(A)'s decision based on this precedent, stating that no contrary decision was presented. Therefore, the grounds raised by the revenue were rejected, and the appeal was dismissed.
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