Deduction u/s 80hhc [Resolved]

This query is : Resolved

CA. SANDEEP SHARMA (Querist)
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20 August 2012 respected members
please spare ur valuable time in solving my query.

the assessee is export and has claimed deduction u/s 80hhc in itr

AO made certain addition on account of unvouchable purchases and disallowed deduction u/s 800hc

ITAT CONFIRMED THE DISALLOWANCE BUT TO BE ADDED AS BUSINESS INCOME OF THE ASSESSEE AND NOT AS INCOME FROM OTHER SOURCES AND DIRECT AO TO RE COMPUTE DEDUCTION U/S 80HHC

while giving appeal effect the ao is saying that the deduction u/s 80hhc is only 6lakh whereas as per the revised it comes out to be 15 lakh but he is allowing deduction of only 6lakh quoting that amount of deduction can not exceed the deduction claimed in itr.

is there any case which suit our case

i thing we are entitled for deduction of 15 lakh and not 6 lakh in appeal effect.

thanks in advance

ca sandeep sharma

U S Sharma

U S Sharma (Expert)
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20 August 2012 auditors certificate 10CCAC calculation is final for the purpose,

CA. SANDEEP SHARMA

CA. SANDEEP SHARMA (Querist)
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20 August 2012 thank for the reply

auditor has certified 6 lakh and same is claimed in itr.
but AO made some additions on account of un vouched purchases ,, that is confirmed by itat . the disallowances is added back as business income.
AO is directed to recompute the deduction.. while recomputing the deduction the amount of deduction come to 15lakh and now the ao is saying that you can not claim deduction more that what you have claimed in itr.

is there any case law where it is held that deduction can be increased

thanks in advance