9911796707
TMI Blog2005 (1) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... 1961. 3. At the time of hearing, a concise ground of appeal has been filed by the assessee with reference to its appeal. The appeal filed by the assessee is, therefore, disposed of on the basis of the said concise grounds of appeal. 4. The first ground raised by the assessee is as follows : "The learned CIT(A) has erred in law and in facts in confirming the restriction of claim of deduction under section 80-O of the Income-tax Act, 1961 to Rs. 1,19,07,992 against the appellant s claim of Rs. 1,43,96,775. The learned CIT(A) further erred in restricting the deduction under section 80-O of the Act to the business income instead of gross total income." 5. In the previous year relevant to the assessment year under appeal, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and, therefore, he restricted the deduction under section 80-O to the available business income of Rs. 1,05,52,014. 7. The first ground is raised by the assessee in the above context. Shri Vijay Mehta, the learned Chartered Accountant for the assessee-company, submitted that he is not seriously pressing the ground raised by the assessee regarding the computation of the amount eligible for deduction under section 80-O. We also find force in the computation made out by the Assessing Officer in his order. Therefore, we uphold the working of the assessing authority on the eligible amount available for deduction under section 80-O at Rs. 1,19,07,992 as against the claim of Rs. 1,43,96,775 made by the assessee-company. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal income of the assessee. The only condition is that the gross total income of the assessee should include such receipts, which are eligible for deduction under section 80-O. 10. Shri Mahesh Kumar, the learned D.R., on the other hand, submitted that the deduction under Chapter VI-A is subject to the provisions contained in section 80AB. Deductions in respect of certain incomes are provided under the heading "C", under Chapter VI-A. The provisions contained in section 80AB stipulate that the deductions in respect of those incomes should not exceed the income to which it belonged. He submitted that in the present case, the income computed as eligible to be deducted under section 80-O has been derived out of the business carried on by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nothing in those sections to provide that the amount available for deduction under section 80-O should be limited to the business income of an assessee. If the gross total income of the assessee includes income from such receipts as specified in section 80-O, deduction is available. As far as section 80-O is concerned, reference is made to the gross total income of the assessee and not to any particular head of income. Section 80-O does not provide for the classification of the income under any particular head. There is no mention that the income considered under section 80-O is that of the business income of the assessee-company. 12. Sections 80AA and 80AB have been introduced by the Finance (No. 2) Act, 1980. In the light of the intr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the net income as computed in accordance with the provisions of the Income-tax Act alone be regarded as the income which is received by the assessee and included in the gross total income. Therefore, the provisions of section 80AB do not come in the way of the claim of the assessee that the deduction under section 80-O should be available to the assessee from the gross total income and there is no need to restrict the deduction to the business income of the assessee. Section 80AB is inserted for the purpose of limiting the deduction under Chapter VI-A to the true income element of the receipt and not for the gross amount of the receipt. 13. Therefore, we find that the Assessing Officer is not justified in restricting the deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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