Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (1) TMI 906 - AT - Income TaxTraveling expenses - expenditure claimed under the head 'provision for traveling' should have been disallowed by the Assessing Officer. During the course of proceedings AR submitted that the vouchers can be produced before the AO in case the matter is remanded back to the AO, matter remanded back to the AO to again reconsider the quantum of amount to be disallowed under the head 'provision for traveling' after giving opportunity to the assessee 100% EOU - Carry forward loss - Deduction u/s 10B - AO mentioned that the assessee has set off brought forward losses against the positive income of the year. The losses relates to undertaking in which the assessee is entitled for deduction u/s 10B of the I.T. Act and accordingly, the provisions of such sections do not permit to carry forward of the losses and to set off of the same against the income. The set off of the losses was not allowed. - held that:- For the asst. year 2003-04, the second proviso to section 10B(1) provide that deduction is to be considered as 90% of the profits and gains derived by the undertaking from the export of articles or things or computer Software. The set off of loss as mentioned in section 72 says that carry forward of the loss is to be set off against the profits and gains of any business or profession carried on by the assessee and assessable for the subsequent asst, year. Thus, 90% of the deduction as computed u/s 10B is admissible as per second proviso for the asst. year 2003-04 and 10% of such deduction becomes assessable for the asst. year 2003-04. Once such income becomes assessable for the asst. year 2003-04, then loss of earlier year can be set off in view of section 72(1)(i). Hence, the loss of asst. year 2001-02 is required to be set off as claimed by the assessee. - Decided in favor of assessee.
|