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TMI Blog2016 (2) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... y deduction is required to be made or allowed under any law, included in this Chapter under the heading, C.- deductions in respect of certain income in respect of any income of the nature specified in that section, which is included in the gross income of the assessee, then, notwithstanding anything contained in that section, for the purpose of computing deduction under that section, the amount of income of that nature as computed in accordance with the provisions of this Act ( before making any deduction under this Chapter) shall alone to be deemed to the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income. The decision of the Tribunal in the case of Sun Pharmac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess deduction of ₹ 5,02,189/- u/s 80-IB of the Act. On query, the assessee stated that this amount did not represent any other income but it represented expenses disallowed from the profit loss account and that the said addition had been made on account of disallowance u/s 40(a)(ia) of the Act, for non-deduction of TDS on payments of ₹ 5,02,189/- concerning loading and unloading expenses. The AO observed that the disallowance u/s 40(a) of the Act, is for violation of a specific provisions of the Act; that the assessee had contravened the provisions of the section 40(a)(ia) of the Act and this amount was not an allowable expense and was added back by the Auditor to the income in the profit loss account; that the Auditor had a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ramesh Bhatia C. Prajapati , the Ahmedabad Bench of the Tribunal, in ITA No.226 of 2010, had held that it is a settled principle that the deeming fiction created under any provision of the Act cannot be imported into a beneficial provision of the Act; that the addition made by the AO on account of disallowance of expenditure is due to the deeming fiction created by the penal section 40(a)(ia) of the Act; that thus, the effect of the same cannot be imported into a beneficial provision, like section 80-IB(1) of the Act; that while computing deduction u/s 80IB(10), the plain meaning of the language of the Act has to be given effect and the legal fiction created by virtue of section 40(a)(ia) cannot be extended to determine the profit of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the assessee, then, notwithstanding anything contained in that section, for the purpose of computing deduction under that section, the amount of income of that nature as computed in accordance with the provisions of this Act ( before making any deduction under this Chapter) shall alone to be deemed to the amount of income of that nature which is derived or received by the assessee and which is included in his gross total income. 8. The decision of the Tribunal in the case of Sun Pharmaceuticals (supra), as noted, was followed by the Tribunal in the assessee s own case for the AY 2008-09, vide order dated 26.07.2012 (supra). The facts in the present case of the assessee for the AY 2008-09 have not been shown to be any differ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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