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TMI Blog2012 (7) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... RDER PER ASHA VIJAYARAGHAVAN, J.M.: This appeal filed by the Revenue is directed against the order of CIT(A)-II, Hyderabad, dated 14/10/2011 for the assessment year 2008-09. 2. Briefly the facts of the case are that the assessee company is engaged in construction business of housing projects and real estate. The AO had made an addition of ₹ 1,51,13,120/- u/s 40A(3) on the groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to keep the issue alive, the amount of expenditure incurred in cash is disallowed u/s 40A(3) treating the same as deemed income unrelated to profits of business. Accordingly, the same was not considered by the AO as eligible for deduction u/s 80IB. 3. Aggrieved by the order of the AO, the assessee carried the matter in appeal before the CIT(A) raising a ground that the deduction u/s 80IB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business and therefore the assessee is entitled to deduction u/s 80IB on the enhanced profit. 5. Aggrieved by the order of the CIT(A), the revenue is in appeal before us raising the following grounds of appeal:- 1. The order of the ld. CIT(A) is erroneous on facts and in law. 2. The CIT(A) erred in law in holding that deduction u/s 80IB should be allowed on the addition made u/s 40A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deemed to be the income of the assessee- plain consequence of the disallowance and the add back that has been made by the AO is an increase in the business profits of the assessee Exemption under section 10A is allowable with reference to such enhanced income. 7. In the case of CIT Vs. Allied Industries 229 CTR 462, the Hon ble Himachal Pradesh High Court held that the addition was made to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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