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Income Tax Appellate Tribunal, SMC Bench, Mumbai
Before: Shri R.C. SharmaShri Prakash Prabhudas
This appeal has been filed by the assessee against the order of the CIT(A)-28, Mumbai dated 10.10.2017 for A.Y. 2010-11, in the matter of order passed under Section 143(3) Income Tax Act (hereinafter “the Act”).
The assessee is basically aggrieved by the order of the lower authorities declining claim of deduction under Section 10A of the Act on the income enhanced during assessment proceedings.
The brief facts of the case are that the assessee is engaged in processing of computer chips and peripherals. During the course of scrutiny assessment the AO made adhoc disallowance in respect of various expenses which led to increase in assessee’s income. Further, while granting deduction under Section 10A of the Act, the AO did not allow the deduction under Section 10A on the enhanced income.
The issue is squarely covered by the decision of the Hon'ble Bombay High Court reported at 330 ITR 174, wherein it was held that exemption/ deduction under Section 10A should be granted on enhanced business
Shri Prakash Prabhudas Mandavia income. Accordingly the AO is directed to give exemption/deduction under Section 10A of the Act on enhance income.
In the result, the appeal filed by the assessee is allowed in terms indicated hereinabove.