Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (2) TMI 749 - ITAT CHENNAIDeduction under Section 10A - non filing of Return of income - Held that:- On perusal of the assessment order, it appears that for the assessment year 2006-07, the assessee filed return of income on 30.11.2006. It is not known what was the due date for filing return of income for the assessment year 2006-07. Similarly, for other assessment year also it is not clear from the orders of the lower authorities the due date for filing return of income under Section 139(1) of the Act specified by the CBDT. Therefore, the order of the CIT(Appeals) is set aside on this issue and the matter is remitted back to the file of the Assessing Officer to verify the due date for filing return of income under Section 139(1) for the respective assessment years. After verification, if the Assessing Officer found that the return of income was filed within the due date specified under Section 139(1), then the assessee is eligible for deduction under Section 10A of the Act. If, for any reason, if the Assessing Officer came to a conclusion that the return of income was not filed under Section 139(1), then the assessee is not eligible for deduction under Section 10A of the Act. Therefore, for a limited purpose of verifying the due date for filing the return of income under Section 139(1) of the Act, the matter is remitted back to the file of the Assessing Officer. Disallowance under Section 14A - CIT(A) allowed the claim - Held that:- For the assessment years 2006-07 and 2008-09, the investments were made in 100% foreign subsidiary companies. No fresh investment had been made in the financial years 2008-09 and 2009-10. Since the investment was made in the subsidiary companies in the form of equity, the CIT(Appeals) corectly found that such investment is outside the scope of Section 14A of the Act. When the assessee invested the funds in subsidiary companies, as rightly submitted by the Ld.counsel for the assessee, the intention is not for earning the exempt income but because of commercial expediency. Therefore, as rightly found by the CIT(Appeals), the provisions of Section 14A would not be applicable for the assessment year 2006-07 and 2008-09. In view of this, we find no reason to interfere with the order of the CIT(Appeals) and accordingly, the same is confirmed. - Decided against revenue
|