Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 403 - AT - Income TaxDisallow the claim of deduction u/s 80IB on Duty Draw Back - AO stated that said benefit has not been derived by the assessee directly from the business of the industrial undertaking Held that:- Following the decision in case of Sterling Food ltd. (1999 (4) TMI 1 - SUPREME COURT) that the benefit of import entitlements are granted by CG under an Export Promotion Scheme. Therefore, the source of import entitlements could not be said to be the industrial undertaking of the assessee. Appeal decides in favour of revenue Disallowance of sharing of common expenses/facilities Assessee has two units in Mumbai and Daman maintain separate books of accounts - Claim deduction u/s.80IB in respect of Daman Unit - Mumbai Unit is in only one activity of job work of stitching garments and Daman unit is engaged in multiple activities of manufacturing readymade garments - AO stated that assessee has under-allocated expenses and thus claimed excessive deduction u/s.80IB - Held that:- Following the decision in case of Nitco Tiles Ltd (2009 (4) TMI 547 - ITAT MUMBAI) that total turnover of the eligible Daman Unit is 73.43%, it is fair and reasonable to allocate the expenses between the units on the basis of turnover in the absence of any contrary facts brought on record before us. Therefore appeal decides in favour of revenue Disallowance on account of delay in deposit of employees contribution to PF Held that:- Employees contribution which is covered u/s 36(va) is to be allowed as deduction if the deposits are made within due date/grace period. Issue decides in favour of assessee Disallowance of interest expense - AO considered that amount is partly used for business purposes and partly used for non-business purposes Assessee has used some money in purchasing the controlling stake in an company - Held that:- As the amount to that extent has been paid by the assessee to acquire capital assets and as such, borrowing money used to acquire controlling interest in the firm by purchase of shares and/or by acquiring assets could not be allowed as deduction and interest is to be disallowed in relation to loan which has been given to others, on which, no interest has been charged by the assessee. The assessee has not contended that the said loans to others have been given for any business purposes. Issue remand back to AO.
|