2017 (9) TMI 472

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..... dgement in Cambay Electric Supply Industrial Co. Ltd. vs. CIT (1978 (4) TMI 1 - SUPREME Court) has held that profit “derived” for the purposes of section 80- IB(10) would mean profit as computed in the manner laid down in the Act, i.e. as per the provisions of Section 30 to 43D. - Decided against revenue
Shri P K Bansal, Vice President And Shri Pawan Singh, Judicial Member Appellant by : Shri V. Vidhyadhar Respondent by : Shri V.G. Ginde ORDER Per Bench This appeal has been filed by the Revenue against the order of the CIT(A)-25, Mumbai dated 06.03.2017 for A.Y. 2010-11 on the following effective grounds of appeal: - "1. On the facts and circumstances of the case and in Law, the Ld. CIT(A) erred in directing to allow deduction u/s .....

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..... s. 250 of the Income Tax Act the AO allowed the deduction under section 80P with reference to business income as per the return of income filed in accordance with assessee's business income. Hence the income was determined after taking the disallowance at ₹ 1,08,93,180/- and the assessee went in appeal claiming the deduction under section 80P in respect of the disallowances/deduction made under the head "income from business". The CIT(A) allowed the appeal of the assessee and directed the AO to allow deduction to the assessee under section 80P on the enhanced business income and not the business income shown in the return of income filed for the year under consideration. 3. We have heard the rival submissions and carefully considered .....

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..... for the purpose of allowing deduction under section 80P(2)(a)(i), notwithstanding the amount of business profit declared in the return of income. Therefore, in our view the income which has been computed by the AO after making certain additions/disallowances has to be taken as eligible for deduction under section 80P(2)(a)(i) if it complies the conditions stipulated therein. Somewhat similar issue has been decided by the "E" Bench of this Tribunal in ITA No. 1245/Mum/2009 vide order dated 14.05.2010 in the case of M/s. S.B. Builders & Developers vs. Income Tax Officer. In this case the Hon'ble Mumbai Bench had decided similar issue in the context of deduction under section 80IB(10) in respect of profits derived from the undertaking developi .....

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