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TMI Blog2021 (10) TMI 560X X X X Extracts X X X X X X X X Extracts X X X X ..... me which in assessee's case includes income from capital gain 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 capital gain 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 prays that the order of the CIT(A) be vacated and that of the Assessing Officer be restor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has extended its claim of deduction against income from Long Term Capital gain and income from other sources also which was not allowable u/s.80IA(5) of the Act. Thereafter, the Assessing Officer discussed section 80IA of the Act and after considering the principles laid down in JB Boda & Co. Pvt. Ltd., Mumbai Vs. ACIT, Central Circle of the ITAT, Mumbai Bench held that the assessee claiming deduction u/s.80IA of the Act on long term capital gain, income from other sources against which assessee was seeking deduction is nothing but independent activity and therefore, principles laid down in the decision of the Mumbai Bench of the Tribunal (supra.) does not apply to the case of the assessee. 5.1 The Assessing Officer vide Para 13 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Tridoss Laboratoreis Ltd. 328 ITR 448 ( Bom.). It has been held in Tridoss as under: Section 80IA provides that where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was computed at Rs. 98.43 lakhs. The Tribunal has restricted the deduction to the extent of the gross total income, namely, Rs. 14.57 lakhs. The decision of the Tribunal is in accordance with the provisions of the Act. In the circumstances, 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. 17,40,33,71 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decisions cited supra, the AO is directed to allow the deduction u/s.80IA to the appellant on the gross total income and not restrict it to the income from business alone. The appellant therefore succeeds on merits of this case. The AO will however restrict the deduction u/s.80IA to the gross total income in each year." 7. The Ld. CIT(Appeal) has also referred to 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 the question of deduction u/s.80HHC which is pari material with Section 80IA and in that case, the assessee though was entitled for deduction 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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