9911796707
TMI Blog2004 (11) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted by the appellate authority and the assessment order was confirmed. Consequently, the respondent filed an appeal before the Tribunal. The Tribunal accepted this point and upheld the claim of the assessee in regard to the deduction under section 32AB and directed the Assessing Officer to recalculate the deduction by including the interest, dividend incomes. Challenging the same, this appeal has been filed by the Deputy Commissioner of Income-tax, Special Range-I, Coimbatore. According to counsel for the appellant, the interest and dividend income credited in the profit and loss account will (not) form part of the eligible business income under section 32AB of the Income-tax Act and as such, the order impugned is wrong. The substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness or profession', has, out of such income, - ... shall be allowed a deduction (such deduction being allowed before the loss, if any, brought forward from earlier years is set off under section 72) of - (i) a sum equal to the amount, or the aggregate of the amounts, so deposited and any amount so utilised; or (ii) a sum equal to twenty per cent, of the profits of business or profession as computed in the accounts of the assessee audited in accordance with sub-section (5), whichever is less." Sub-section (3) of section 32AB sets out the manner in which the profits of eligible business or profession of an assessee for the purposes of subsection (1) is to be calculated. It provides, "(3) The profits of eligible business or profession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... III of the Sixth Schedule to the Companies Act. From that figure, the amount equal to the depreciation computed in accordance with section 32(1) of the Income-tax Act is to be deducted. After such deduction, that amount is to be increased by the aggregate of the amounts set out in sub-clauses (i) to (vii) of section 32(3)(a). A sum equal to 20 per cent, of that amount is to be allowed as a deduction under section 32AB(1)(ii). The determination of the profit required to be made in accordance with Parts II and III of the Sixth Schedule to the Companies Act is required to be made after taking into account all the activities of the assessee governed by the Companies Act, as the profit and loss account required to be drawn up by a company must ..... X X X X Extracts X X X X X X X X Extracts X X X X
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