HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.271 of 2014 Date: 17.04.2014 Between:
The Commissioner of Income Tax-I, Hyderabad . Appellant AND M/s Datta Constructions Limited, Hyderabad ...Respondent HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.271 of 2014 JUDGMENT: (per Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta ) This appeal is sought to be preferred and admitted against the judgment and order of the learned Tribunal dated 27th July, 2012 in relation to the assessment year 2008-09 on the following suggested question of law:
“Whether, in the facts and circumstances of the case and in law, the learned Tribunal is correct in upholding the order of the CIT (Appeals) holding that the disallowance made by the Assessing Officer would enhance the profits of the business and the assessee is entitled to deduction under Section 80IB of the Income Tax Act, 1961, on the enhanced profits?
The learned Tribunal, while following the decisions of the Bombay High Court in the case of CIT Vs. Gem Plus Jewellery India Limited (233 CTR 24) and also the Himachal Pradesh High Court in the case of CIT Vs. Allied Industries (229 CTR 462) has decided the matter and held that the addition was made to the income of the assessee and had been assessed under the head of profits and gains of business. Since the entire profits of the business are entitled for 100% deduction, the addition on account of such discrepancy will only result in the enhancement of the income of the business and would be entitled for such deduction. Hence, we do not find any reason to interfere with the judgment and order of the learned Tribunal.
Accordingly, we dismiss the appeal. Miscellaneous petitions pending, if any, shall also stand closed. No order as to costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J
17-04-2014
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