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| The Tax Publishers2020 TaxPub(DT) 2432 (Bang-Trib) : (2020) 084 ITR (Trib) 0630 INCOME TAX ACT, 1961
Section 10A Section 10AA
Even if expenditure was disallowed under section 40(a)(i) result would be that disallowance would go to increase profits of business which is eligible for deduction under section 10A/10AA and consequently deduction under section 10A/10AA was to be allowed on such enhanced profit.
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Deduction under section 10A/10AA - Allowability - Profit enhanced due to disallowance under section 40(a)(ia) -
Assessee claimed deduction under section 10A/10AA on enhanced due to disallowance under section 40(a)(ia) profits due to disallowance under section 40(a)(i). Held: There was no dispute regarding genuineness of expenditure that was disallowed and the fact that expenditure was otherwise allowable as deduction in computing income from business. In such circumstances, even if expenditure was disallowed under section 40(a)(i) result would be that disallowance would go to increase profits of business which is eligible for deduction under section 10A/10AA and consequently deduction under section 10A/10AA was to be allowed on such enhanced profit.
Suppoerted by:CIT v. Gem Plus Jewellery India Ltd. (2010) 194 Taxman 192 (Bom) : 2011 TaxPub(DT) 314 (Bom-HC) and ITO v. Kewal Construction (2013) 354 ITR 13 (Guj) : 2013 TaxPub(DT) 1595 (Guj-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
IN THE ITAT, BANGALORE BENCH
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