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2020 (4) TMI 14 - ITAT CHENNAIEligibility of deduction u/s.10A - CIT(A) allowed the alternate claim u/s.10B - In the earlier proceedings, earlier CIT(A) specifically held that, deduction u/s 10B is not available - HELD THAT:- AO had categorically held that the assessee is not eligible to claim deduction u/s.10A of the Act as the assessee had not complied with the conditions stipulated such as filing form No.56FF. However, the ld. CIT(A) placing reliance on the decision of Heartland K.G. Information Ltd [2013 (9) TMI 375 - MADRAS HIGH COURT] had directed the Assessing Officer to allow the claim of deduction u/s.10B of the Act. The issue of allowability of claim u/s.10B of the Act is neither alive nor it is permissible, as it amounts to overruling the decision of the Tribunal, by CIT(Appeals). Thus, the ld. CIT(A) had seriously fell in error in directing the Assessing Officer to allow the claim for deduction of provision u/s.10B of the Act. Further, it is an admitted position that before making addition on account of Arm’s Length Price adjustment u/s.92CA(3), there was be no profit available which can be claimed as deduction u/s.10B or 10A of the Act. The provisions of Sub Section (4) of Section 92CA of the Act specifically provides that addition made u/s.92CA(3) of the Act is not eligible profits for deduction neither u/s.10A nor u/s.10B of the Act. The ld. CIT(A) in the flagrant ignorance of the plain provisions of the Act allowed the claim for deduction u/s.10B of the Act. Therefore, we reverse the order of the ld. CIT(A) and allow the appeal filed by the Revenue.
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