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The Tax Publishers2019 TaxPub(DT) 4149 (Chd-Trib) INCOME TAX ACT, 1961
Section 80-IA
If AO was of the view that assessee had exaggerated profits of unit eligible for deduction under section 80-IA, at the most, he could have allocated some part of profits to non-eligible units but without making any such exercise, he disallowed entire claim of deduction under section 80-IA, which was not at all justified.
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Deduction under section 80-IA - Disallownace on the allegation of claiming of excessive profit by eligible unit - -
Assessee company was engaged in manufacturing of Iron and Steel Products, Ferro Alloys & Generation and Distribution of Power. AO examined profit and loss account of Power Plant Unit of assessee company which was claiming deduction under section 80-IA and took the view that reflection of excessive profits by said unit was resulting in abnormally high claim of deduction under section 80-IA. Accordingly, AO disallowed entire claim of deduction under section 80-IA.Held: If AO was of the view that assessee had exaggerated profits of unit eligible for deduction under section 80-IA, at the most, he could have allocated some part of profits to non-eligible units but without making any such exercise, he disallowed entire claim of deduction under section 80-IA, which was not at all justified.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 14A
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