9911796707
TMI Blog2021 (10) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... uction u/s. 80IA(4)(iv) on gross total income which in assessee's case includes income from salary, Income from house property and income from other sources whereas as per sec. 80IA(1), the said deduction is envisaged out of profit and gains from the eligible business only. 2. On the facts and in circumstances of the case and in law, the CIT(A) has erred in concluding that gross total income of eligible business includes also income from salary, Income from house property and income from other sources. 3. On the facts and in the circumstances of the case and in law, the CIT(A) has erred in ignoring the non-obstente clause appearing in section 80IA(5) of the Act, which supersedes all other provisions of the Act. 4. The appellant pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year has been computed by the assessee at Rs. 6,05,76,652/- which included income from salary and income from other sources respectively of Rs. 20,40,000/- and of Rs. 1,80,33,292/-. In this backdrop, consequent upon the information received by the Assessing Officer from revenue audit objection that while passing the order dated 01.01.2013 u/s.143(3) of the Act determining total income at Rs. 42,38,227/-, erroneously, gross total income inclusive of income from salary and income from other sources respectively Rs. 20,40,000/- and Rs. 1,80,33,292/- has been considered while allowing the deduction claimed by the assessee u/s.80IA of the Act. 5.1 Therefore, the Assessing Officer was of the opinion from legal aspect of the case, this quantu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per Section 80IA (5) of the Act. The assessee was requested to submit relevant submissions in this regard as to why the deduction u/s.80IA of the Act should not be restricted to Rs. 3,62,65,133/- instead of Rs. 5,63,38,425/- allowed in the assessment order passed u/s.143(3) of the Act. Thereafter, the assessee had filed detailed written submissions which is on record. The Assessing Officer vide Para 15.1 of his order goes on to analyze Section 80IA and opined that it is patently clear that the deduction in question has to be restricted exclusively to the extent of income derived from eligible business as is clarified by the provisions of Section 80IA(5) of the Act. Thus, the part involving salary and income from other sources i.e. Rs. 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise from any business referred to in sub-section (4) (the eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for ten consecutive assessment years. The section contemplates a deduction of an amount representing hundred per cent of the profits and gains derived from the eligible business in computing the total income of the assessee. The expression gross total income is defined by section 80B(5), for the purposes of Chapter VIA., to mean the total income computed in accordance with the provisions of the Act before making any deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, the appeal does not raise any substantial question of law and is accordingly, dismissed." 5.1 I also find that there is a latest decision of the Hon'ble Bombay High Court directly on the issue at hand in the case of V M Salgaocar & Brothers (P) Ltd. (2017) 81 taxmann.com 357. Therein it has been held as under : Where the Assessing Officer determined quantum of deduction under section 80HHC which the assessee was entitled to be a sum of Rs. 19,92,39,981 but restricted such amount to Rs. 17,40,33,719 which according to him was profit of the business, it was held that once the income had been determined by applying the methodology as provided in section 80HHC (3), the question of restricting the deduction in terms of section 80AB would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll however restrict the deduction u/s.80IA to the gross total income in each year." 7. The Ld. CIT(Appeal) has also referred the decision of the Hon‟ble Bombay High Court in the case of V M Salgaocar & Brothers (P) Ltd. 81 taxmann.com 357 wherein it was question of deduction u/s.80HHC which is pari material with Section 80IA and in that case, the assessee though was entitled for deduction a sum of Rs. 19,92,39,981/- u/s.80HHC of the Act, it was restricted by the Revenue at Rs. 17,40,33,719/-. It was held that once income had been determined by applying the methodology as provided in Section 80HHC (3), the question of restricting the deduction in terms of Section 80AB would not arise. That Section 80AB(2) of the Act, the restriction o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
