Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 612 - AT - Income TaxDeduction under section 10A - assessment in the hands of resulting company or demerged company (assessee) - denial as STPI unit was started only by splitting up of existing infrastructure - ‘Appointed Date’ of scheme of demerger - Held that:- After perusal and consideration of the provision of sections 2(19AA), 10A(1), 10A(7A) and 72A(4) of the Act, it is necessary to arrive at a harmonious construction to assume that the intention of legislature is not frustrated especially in view of the decision of the Hon'ble Apex Court in the case of K.P. Varghese Vs. ITO [1981 (9) TMI 1 - SUPREME COURT] wherein the Hon'ble Apex Court has ruled that a literal construction of a statute that leads to an absurdity, or unjust result or mischief is to be avoided. If the income of the STPI undertaking for the period 1.4.2004 to 30.9.2004 were to be assessed in the hands of the assessee, then the income become fully taxable as in accordance with the provision of section 10A(7A), the same is not eligible for deduction in the hands of the assessee and in which event it runs contrary to the provisions of section 10A(1). Thus no part of the income of the STPI undertaking for the Assessment Year 2005-06 is to be treated as income of the assessee. AO is directed to delete the income pertaining to the demerged STPI undertaking from the taxable income of the assessee and pass necessary orders to give effect to the same so that the said income is treated as income of the resulting company - in favour of assessee.
|