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2.3 The   details   of   amount   of   deduction  claimed u/s 10AA, balance of capital account   and   interest   not   claimed   during   the   period  2008­09 is detailed below:
Assessment Total Balance Interest not Deduction Total amount year in Capital claimed as claimed u/s to be account (Rs.) per section 10AA (Rs. disallowed u/s 40(b)(iv) @ 10AA(9) r.w.s.
2.4 Thus,   the   assessee   firm   had   made   more  profits than reasonable profits, which would  have accrued resulting into higher claim of  deduction u/s 10AA.  As can be seen from the  above   table,   the   assessee   had   benefited   by  not   providing   for   the   interest   to   the   partners to the extent of Rs.4,76,94,522 and   during AY 2009­10. In view of the provisions  of 80IA(10) r.w.s. Income taxable u/s 56(1)  of the Act) from the business income eligible  for deduction u/s 10AA of the Act. This being  resulted   into   underassessment   of   income   of  Rs.30,66,68,434/­.

3.2 Since, the  assessee firm had made more  profits to the extent of Rs.384840727/­ than   reasonable   profits   which   would   have   accrued  resulting into higher claim of deduction u/s   10AA.  In view of the provisions of 80IA(10)  r.w.s.   10AA(9)   of   the   Act,   an   amount   of   Rs.38,48,40,727/­  limited   to   exemption  claimed   u/s   10AA   was   required   to   be   disallowed.      


         3.3    In view of the above, I have therefore 




HC-NIC                        Page 5 of 16     Created On Sat Jul 09 00:04:23 IST 2016
                C/SCA/3595/2016                                           JUDGMENT
"5. Find   attached   herewith   ledger   accounts  representing partners' capital accounts along  with   contra   confirmation   duly   signed   seal  with their PAN details. (Annexure­D)"

12. Further,   in   its   letter   dated   02.03.2010,   the  assessee   supplied   further   details   to   the   Assessing  Officer as under:  

HC-NIC Page 12 of 16 Created On Sat Jul 09 00:04:23 IST 2016 C/SCA/3595/2016 JUDGMENT "2. The report u/s 10AA of Income Tax Act in  form   no.56F   dated   27/09/2008   along   with  Annexure A together with notes forming part  of   the   said   report   in   respect   of   claim   of   deduction   u/s   10AA   of   eligible   profit   from  newly   established   manufacturing   unit   at  no.447, 448 and 449 in Surat S.E.Z., Sachin,  Surat   notified   by   the   Government   of   India  (Ministry   of   commerce   Industry),   vide   the  letter   of   approval   no.   SSEZ/11/05/2006­ 07/2116,   dated   20th  November,   2006   under  provisions of the Special Economic Zone Act,   2005 (Annexure B)