Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 1044 - HC - Income TaxComputation of deduction u/s 10A - Tribunal came to the conclusion that there was nothing on record to show that the profits arrived at by the assessee in respect of the section 10A unit carrying on the business of manufacturing industrial sewing machine needles was not in the normal course of its business and that the abnormally high profit was due to extraordinary arrangement between the assessee and the German company entered into only with a view to boost the profits of the assessee and therefore allowing deduction of ₹ 20,53,26,910 ? - Tribunal held that there was no material available with the Assessing Officer to estimate the profits of the section 10A unit eligible for deduction invoking the provisions of section 80-IA(10) read with section 10A(7) of the Act Held that:- The impugned order of the Tribunal has followed it's own order in respect of the same assessee for assessment year 2004-05 and the decision of this court in CIT v. Schmetz India P. Ltd. [2012 (9) TMI 407 - BOMBAY HIGH COURT ] wherein held Section 10A is a provision which is in the nature of a deduction and not an exemption - the deduction under Section 10A has to be given effect to at the stage of computing the profits and gains of business - Section 80B(5) defines for the purposes of Chapter VI-A “gross total income” to mean the total income computed in accordance with the provisions of the Act, before making any deduction under the Chapter – against revenue, thus upholding the above order of the Tribunal for the assessment year 2004-05 - Decided against revenue
|